Senior citizens get 8.2% annual return in this scheme, along with separate tax exemption, know the whole thing

Senior citizens can make investments no less than Rs 1000 in the financial savings scheme. Also, you may deposit a most of Rs 30 lakh in this scheme in multiples of 1000.

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Senior Citizen Saving Scheme (SCSS) is a particular financial savings scheme of the Government of India for senior citizens. This scheme offers assured returns to senior citizens. Besides, funding in additionally it is utterly protected. Not solely this, should you make investments in Senior Citizen Saving Scheme, you additionally get the good thing about tax exemption for it. Under this scheme you may open an account in financial institution or publish workplace.

Who can open an account

Under the Senior Citizen Savings Scheme, an individual above 60 years of age can open an account. Additionally, retired civilian staff above 55 years of age and beneath 60 years may also open an account topic to the situation that the funding is made inside 1 month of receipt of retirement advantages. The account might be opened solely in particular person capability or collectively with partner. Keep in thoughts right here, the total quantity deposited in the joint account will belong solely to the main account holder.

How a lot quantity might be invested

Senior citizens can make investments no less than Rs 1000 in the financial savings scheme. Also, you may deposit a most of Rs 30 lakh in this scheme in multiples of 1000. If any extra quantity is deposited in the SCSS account in the Post Office, the extra quantity will likely be instantly returned to the depositor and the rate of interest on Post Office Savings Account solely will likely be relevant from the date of extra deposit until the date of refund.

Returns in the scheme

Senior Citizen Saving Scheme provides 8.2% annual curiosity. In the first occasion, curiosity will likely be payable from the date of deposit until thirty first March/thirtieth September/thirty first December and thereafter curiosity will likely be payable on 1st April, 1st July, 1st October and 1st January. For instance, should you make investments Rs 10,000, you get curiosity of Rs 205 on quarterly foundation. If the complete curiosity in all SCSS accounts exceeds Rs 50,000/- in a monetary yr then the curiosity is taxable and TDS will likely be deducted at the prescribed fee from the complete curiosity paid. If Form 15G/15H is submitted and the curiosity earned doesn’t exceed the prescribed restrict then no TDS will likely be deducted.

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