Government Scheme: Earn up to Rs 70 Lakh with Tax Benefits through this Government Initiative!

Government Scheme: Earn up to Rs 70 Lakh with Tax Benefits through this Government Initiative!

The central government continuously introduces various schemes aimed at providing benefits to the common populace, ensuring that citizens reap the rewards. Many such schemes are specifically tailored to empower women financially. In line with this, the government has initiated a program designed for daughters, offering the potential to accumulate up to Rs 70 lakh with the added advantage of tax exemption.

Enter the Sukanya Samriddhi Yojana (SSY), a tax-free small-saving scheme crafted for the welfare of girls. Currently, the scheme offers an attractive interest rate of 8.2% for the quarter spanning January to March 2024. Participants can contribute anywhere from Rs 250 to Rs 1.5 lakh annually and enjoy tax benefits of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Moreover, the interest earned under this scheme is completely tax-free, making it an enticing prospect for investors.

Eligibility and Account Opening:

To avail of the benefits of the Sukanya Samriddhi Scheme, one must be an Indian resident, and either the parents or legal guardians of the girl child. Accounts can be opened for daughters aged up to 10 years, from birth until the age of 10. A maximum of two accounts can be opened under this scheme, and in the case of twin daughters, accounts can be opened for all three.

Maturity and Withdrawal:

The interest rate for the Sukanya Samriddhi Yojana is revised every quarter, with the current rate set at 8.2% for the January-March 2024 period. Contributions must be made for a total of 15 years, with the account maturing after 21 years. However, upon the daughter reaching 18 years of age, partial withdrawals are permitted.

Achieving Rs 70 Lakh:

The interest rate on the Sukanya Samriddhi Scheme fluctuates with each quarter, with the highest recorded rate at 9.2% and the lowest at 7.6%. Assuming an average interest rate of 8% over the entire 21-year period and an annual investment of Rs 1.5 lakh for 15 years, participants stand to accumulate approximately Rs 70 lakh under this scheme.

In conclusion, the Sukanya Samriddhi Yojana presents an excellent opportunity for long-term savings with the added advantage of tax benefits. By investing wisely in this scheme, parents or guardians can secure a bright financial future for their daughters while enjoying substantial returns on their investment.

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