Question
What is the tax treatment of contributions made to the
Sukanya Samridhi Yojana? Read the passage below and answer the following questions based on the passage ( Q no 27 to 30) Saving for a girl child has become a key priority for many parents in India, driven by both financial security and a growing awareness of the importance of gender equality in education and opportunities. In a country where cultural norms have historically favored investing in male children, there has been a significant shift in perspective. Parents now recognize the need to ensure that their daughters have the financial backing to pursue education, build careers, and lead independent lives. One of the primary reasons parents focus on savings for their girl child is the rising cost of education. In today's competitive world, access to quality education has become essential for future success. Parents often begin saving early to ensure that their daughters can attend good schools, pursue higher education, or even study abroad. Whether it is securing funds for college, professional courses, or vocational training, these savings provide the foundation for a girl’s future empowerment and career opportunities. Another important factor driving parents to save for their daughters is the need to provide for future financial security, including marriage-related expenses. In India, marriage is still considered a major life event, and parents often feel the responsibility to bear the significant financial costs associated with it. Although these expenses can be high, saving early helps reduce the burden on families and ensures that their daughters can have the financial support they need for this important milestone, should they choose to marry.Solution
The contributions made to SSY qualify for a deduction under Section 80C, subject to the overall limit of ₹1.5 lakh for specified investments.
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