Latest news with #SukanyaSamriddhi
Economic Times
18-05-2025
- General
- Economic Times
Get the girl numbers back in Haryana
When it comes to sex ratio at birth (SRB), Haryana has had rollercoaster figures. From an adverse 834 female births for 1,000 male births in the 2011 census (national number was then 918), the state had become somewhat of a turnaround story. Haryana's SRB had improved steadily, reaching 923 in 2019. But that upward curve took a downward trajectory - dropping to 910 in 2024, the state's lowest since 2016, thanks to 481 villages in 13 of Haryana's 22 districts registering SRBs lower than has a long history of adverse SRB - 867 in 1901, increasing to 871 in 2014. Much of this dismal state of affairs is rooted in culturally-entrenched misogyny that normalised female foeticide. So, it was apt that in 2015, GoI launched the 'Beti Bachao, Beti Padhao' campaign in Panipat. The scheme included incentives such as one-time payment of ₹21,000 at the birth of a girl, and opening bank accounts for girls through the 'Sukanya Samriddhi' scheme. Efforts to reduce the drop-out rate among girls and increasing their enrolment at secondary and tertiary levels were taken up seriously. The strict enforcement between 2014 and 2019 of the Pre-Conception and Pre-Natal Diagnostic Techniques Act 1994, banning pre-birth sex determination, did much to stem Haryana's anti-girl flagging enforcement has hurt efforts. Enforcement and intensive awareness efforts need to pick up again. Challenges of driving societal changes must be met head-on again. Laws provide an enforceable framework; enforcement and compliance give a push. Incentives can nudge compliance. But a shift in attitude is possible only through sustained engagement, and involving all stakeholders in an all-of-society approach that was, indeed, evident in the recent past.
Time of India
18-05-2025
- General
- Time of India
Get the girl numbers back in Haryana
When it comes to sex ratio at birth (SRB), Haryana has had rollercoaster figures. From an adverse 834 female births for 1,000 male births in the 2011 census (national number was then 918), the state had become somewhat of a turnaround story. Haryana's SRB had improved steadily, reaching 923 in 2019. But that upward curve took a downward trajectory - dropping to 910 in 2024, the state's lowest since 2016, thanks to 481 villages in 13 of Haryana's 22 districts registering SRBs lower than 700. Haryana has a long history of adverse SRB - 867 in 1901, increasing to 871 in 2014. Much of this dismal state of affairs is rooted in culturally-entrenched misogyny that normalised female foeticide. So, it was apt that in 2015, GoI launched the 'Beti Bachao, Beti Padhao' campaign in Panipat. The scheme included incentives such as one-time payment of ₹21,000 at the birth of a girl, and opening bank accounts for girls through the 'Sukanya Samriddhi' scheme. Efforts to reduce the drop-out rate among girls and increasing their enrolment at secondary and tertiary levels were taken up seriously. The strict enforcement between 2014 and 2019 of the Pre-Conception and Pre-Natal Diagnostic Techniques Act 1994, banning pre-birth sex determination, did much to stem Haryana's anti-girl attitudes. But flagging enforcement has hurt efforts. Enforcement and intensive awareness efforts need to pick up again. Challenges of driving societal changes must be met head-on again. Laws provide an enforceable framework; enforcement and compliance give a push. Incentives can nudge compliance. But a shift in attitude is possible only through sustained engagement, and involving all stakeholders in an all-of-society approach that was, indeed, evident in the recent past. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If You Eat Ginger Everyday for 1 Month This is What Happens Tips and Tricks Undo
The Hindu
12-05-2025
- Business
- The Hindu
The importance of Small Savings Schemes
Small Savings Schemes, kown as Post Office Savings Schemes, are a popular and useful means for people for channelising savings. Credit quality is top-notch as it is run by the government, and interest rates are competitive. Interest rates are fixed by the government every quarter e.g. the rates for the current quarter, April to June 2025, were announced on March 31. Today we will see, on what basis the rates are fixed by the government. Basis for fixing rates As per an old decision of the Government, the rate of interest on Small Savings Schemes will be aligned with Government Security (G-Sec) rates of similar maturity with a spread i.e. mark-up. As an example, the spread on Senior Citizens Savings Scheme will be 1% over comparable maturity G-Secs. The rationale for linking it to G-Sec yields in the secondary market is that it is in line with interest rate movements; G-Sec yield movements reflect actual and anticipated economic events pertaining to interest rate movement. To clarify the concept, let us say the benchmark G-Sec rate is X% and the mark-up as per the formula is Y%. Hence, the rate should be X% plus Y%. However, if the rate is higher, say X% plus Y% plus Z%, then Z represents the generosity of the Government for the benefit of citizens. The rates on Small Savings Schemes are reviewed every quarter. However, rates are not revised downward every quarter even when G-Sec rates are sliding, which is the 'Z' referred earlier. Prevailing rates Post Office Savings Deposit rate is 4%. Public Provident Fund (PPF), which is a 15-year scheme (though it can be extended), is supposed to have a spread of 25 basis points (100 bps = 1%). The relevant G-Sec rate (the average of G-Sec of corresponding maturity from December 2024 to February 2025) relevant for the quarter April to June, was 6.85%. By that logic, PPF rate is (6.85 + 0.25= 7.1%) maintained now. Post Office Term deposits of 1, 2 and 3-year maturity are to be at the corresponding G-Sec rate, without any markup. For a 5-year term deposit, the spread is 25 bps. Against the reference G-Sec yield of 6.62%, it should have been 6.87%. The rate for a 5-year TD is 7.5%. The excess interest is 0.63%. This 63 bps is the 'Z' referred earlier. Kisan Vikas Patra (KVP) is at zero spread; with reference point at 6.85% and rate at 7.5%, the additional interest over formula is 0.65%. For NSC VIII Issue, which is at a mark-up of 25 bps, formula rate is 7.04%. At 7.7%, the additional interest is 0.66%. Senior Citizen Savings Scheme (SCSS), mentioned earlier, has the highest spread of 1% over reference G-Sec yield, as a social benevolence to take care of seniors, who may not have active income. At the reference 5-year G-Sec yield of 6.62%, the formula rate is 7.62%. The rate on offer is 8.2%, implying an additional interest (Z) of 0.58%. Sukanya Samriddhi The last is the Sukanya Samriddhi Account Scheme, which has the longest tenure of 21 years. The formula mark-up is 75 bps. The reference G-Sec yield is 6.85%. Against the formula rate of 7.6%, the rate is 8.2%. The additional interest a girl child would get this quarter is 0.6%. Interest rates are coming down, as the Reserve Bank of India (RBI) has been reducing the reference repo rate. The repo rate, which was 6.5% earlier, is at 6% now. It is expected that the RBI would cut the repo rate further. This is driven by lower inflation and economic growth being a little lower than earlier. Consequently, G-Sec yields have eased. As an example, 10-year maturity G-Sec, which was at 7.2% a year ago and 6.85% six months ago, is at 6.36% now. The reference G-Sec yield levels mentioned earlier pertain to the period December 2024 to February 2025. Since then, G-Sec yields are lower. The implication is, when rates for next quarter viz. July to September are announced on June 30, the reference point will be lower. Conclusion We have mentioned earlier, there is a 'generosity component' or 'Z' component in the currently prevailing Small Savings rates. With the reference rate coming down, if the government maintains the current rates, the 'Z' component will be higher. While it is possible it maintains current rates as there is a political implication of cutting it, pressure will be higher on government's finances. Hence there is a possibility Small Savings rates may be reduced going forward. From that perspective, if you have the money, it is advisable that you lock-in by June. (The writer is a corporate trainer (financial markets) and author)
Mint
25-04-2025
- Business
- Mint
How you can save up to ₹7,000 on interest income under the new tax regime
MUMBAI : Though the new tax regime offers a simpler framework by eliminating deductions and exemptions, some incomes are still eligible for tax benefits. One such income is the interest on post office savings accounts. Under the new regime, taxpayers can claim a tax exemption of up to ₹ 3,500 on a single account and up to ₹ 7,000 on a joint account under Section 10(15) of the Income Tax Act. While deductions under Sections 80TTA and 80TTB—applicable to interest from savings accounts—are no longer available in the new regime, certain exemptions under Section 10 continue to be valid. 'Interest earned in statutory provident funds under Section 10(11), recognized provident funds up to 9.5% under Section 10(12), Sukanya Samriddhi accounts under Section 10(11A), and Post Office savings accounts under Section 10(15) is exempt under the new tax regime," said Abhishek Kumar, a Sebi-registered investment advisor and the founder of SahajMoney. 'Interest from post office savings accounts continues to be exempt under Section 10(15), and this is applicable under both the old and new tax regimes," added Kinjal Bhuta, a chartered accountant and the secretary of Bombay Chartered Accountants' Society. "Taxpayers are not required to add this exempt income to their gross taxable income," said Kumar. 'However, they must report it as 'exempt income' in their income tax return (ITR) form." If the interest earned exceeds ₹ 3,500 for an individual account or ₹ 7,000 for a joint account, the excess amount is taxable and must be declared under 'income from other sources'. Opening a post office savings account is straightforward and can be done both online and offline. According to Kinjal Bhuta, the steps are as follows: Step 1: Visit the nearest post office branch. Step 2: Obtain and fill out the account opening form. Forms are also available for download from the official India Post website. Step 3: Submit the form, along with know your customer (KYC) documents such as Aadhaar and PAN. Step 4: Deposit the minimum required amount to activate the account. It takes 2-3 working days to open an account. 'As per the latest notification from the ministry of finance, Aadhaar and PAN are mandatory for opening a new post office savings account. If Aadhaar hasn't been issued yet, one must provide proof of Aadhaar enrollment and furnish the Aadhaar number within six months," Kumar added. Any resident Indian aged 10 years or above can open an account. Minors can have accounts opened by parents or guardians. While the process is mostly hassle-free, some procedural quirks remain. 'There is a penalty of ₹ 50 plus GST annually if the minimum balance of ₹ 500 is not maintained," added Kumar. Failure to make any transaction in the post office savings account for three fiscal years also makes it dormant, and one needs to do the KYC again to revive it. Still, post office accounts remain an attractive option for many, especially those looking for low-risk savings and tax efficiency. The interest rate on post office savings accounts is 4%.
