Small Saving Schemes: Return & Taxation

Current Context: These are just a few of the many small saving schemes offered by the Indian government. When choosing a small saving scheme, it is important to consider your investment goals, risk tolerance, and time horizon.

• Here are some of the schemes:
• Public Provident Fund (PPF): The PPF is a long-term investment scheme with a maturity period of 15 years. The current interest rate is 7.1% per annum. The PPF is exempt from tax under Section 80C of the Income Tax Act.
• Senior Citizen Savings Scheme (SCSS): The SCSS is a savings scheme for senior citizens aged 60 years and above. The current interest rate is 8.2% per annum. The SCSS is exempt from tax under Section 80C of the Income Tax Act.
• Sukanya Samriddhi Yojana (SSY): The SSY is a savings scheme for girls below the age of 10 years. The current interest rate is 8.2% per annum. The SSY is exempt from tax under Section 80C of the Income Tax Act.
• National Savings Certificate (NSC): The NSC is a fixed-income investment scheme with a maturity period of 5 to 10 years. The current interest rate is 7.7% per annum. The NSC is exempt from tax under Section 80C of the Income Tax Act.
• Kisan Vikas Patra (KVP): The KVP is a savings scheme for rural investors. The current interest rate is 7.5% per annum. The KVP is exempt from tax under Section 80C of the Income Tax Act.

Question:

Q.1 What is the current interest rate for the Sukanya Samriddhi Yojana (SSY)?
a. 7.1%
b. 7.5%
c. 7.7%
d. 8.2%