New Delhi, Nov. 2 -- The Sukanya Samriddhi Yojana (SSY) is a popular government-backed small savings scheme aimed at helping parents build a financial corpus for their daughters.

The savings can be used for expenses such as education, marriage and healthcare. In addition to offering investors an attractive interest rate, the scheme provides tax benefits that make it a tax-efficient long-term savings option.

Another key benefit of the SSY scheme is that the entire maturity amount, including the principal and accumulated interest, is exempt from tax, subject to the scheme's rules. Here's how the tax benefits work.

The SSY scheme follows the Exempt-Exempt-Exempt (EEE) taxation model. Under this framework, eligible investments, interest ea...