The Senior Citizen Savings
Scheme (SCSS) under the Post Office Savings Schemes is one of the best investment
schemes for Senior Citizen. This scheme is very
popular among senior citizens as it offers fair returns, low risk, and a tax saving option. In this post, let’s
take a look at Senior Citizen Savings
Scheme (SCSS) Account.
Eligibility for opening Senior Citizen Savings Scheme (SCSS) Account
1. An individual of the Age of
60 years or more may open the account.
2. An individual of the age of
55 years or more but less than 60 years who have
retired on superannuation or under VRS can also open account subject to the
condition that the account is opened within one month of receipt of retirement
benefits and the amount should not exceed
the amount of retirement benefits.
3. The account can be opened by cash for the amount below Rs. 1 lakh
and for Rs.1 Lakh and above by cheque only. In case of cheque, the date of
realization of the cheque in Govt.
account shall be the date of opening of the
account.
The rate of
interest on Senior Citizen Savings Scheme (SCSS)
From 01.04.2020, interest rates
are 7.4% per annum. Interest payable from the date of deposit of 31st
March/30th Sept/31st December in the first instance & thereafter, interest
shall be payable on 31st March, 30th June, 30th Sept and 31st December.
For auto credit of interest, a savings account is required with the same post office. Quarterly interest will be payable on 1st day (working) of April, July, October and January. This will be applicable for all CBS post offices.
The quarterly interest standing at CBS post offices can be credited in any saving account at any CBS post offices.
For auto credit of interest, a savings account is required with the same post office. Quarterly interest will be payable on 1st day (working) of April, July, October and January. This will be applicable for all CBS post offices.
The quarterly interest standing at CBS post offices can be credited in any saving account at any CBS post offices.
Tenure of Senior
Citizen Savings Scheme (SCSS)
The maturity
period of the scheme is 5 years. After maturity, the account can be extended
for further three years within one year of the maturity by giving an application in prescribed format.
In such cases, the account can be closed at any time after the expiry of one year of extension without any deduction.
In such cases, the account can be closed at any time after the expiry of one year of extension without any deduction.
Minimum Amount for the opening of the account and maximum balance that can be retained
There shall be only one
deposit in the account in multiple of Rs.1000/- maximum not exceeding Rs.15
lakh.
Documents Required for opening an Account
KYC form, Photographs, PAN
card, address and age proof. For retirees, proof of date of disbursal of such
retirement benefit(s) along with a certificate from the employer.
Number of accounts
A depositor may operate more
than one account in an individual
capacity or jointly with spouse
(husband/wife).
Any number of accounts can be opened in any post office subject to maximum investment limit of Rs. 15 lakh by adding balance in all accounts.
A joint account can be opened with spouse only and the first depositor in the Joint account is the investor.
Any number of accounts can be opened in any post office subject to maximum investment limit of Rs. 15 lakh by adding balance in all accounts.
A joint account can be opened with spouse only and the first depositor in the Joint account is the investor.
Account transfer facility under Senior Citizen Savings Scheme (SCSS)
An account can be transferred
from one post office to another.
Nomination facility
Nomination facility is
available under this scheme at the time of opening and also after the opening of the account.
Premature closure of Senior Citizen Savings Scheme (SCSS) Account
Premature closure of SCSS account is allowed
1. If account is closed before one year then no interest will be payable. If it is paid already then it will be recovered.
2. Closure of account after one year on deduction of an amount equal to 1.5% of the deposit.
3. Closure of account after two years 1% of the deposit to be deducted.
1. If account is closed before one year then no interest will be payable. If it is paid already then it will be recovered.
2. Closure of account after one year on deduction of an amount equal to 1.5% of the deposit.
3. Closure of account after two years 1% of the deposit to be deducted.
Tax Benefits under Senior Citizen Savings Scheme (SCSS)
TDS is deducted on interest
if the interest amount is more than Rs. 50,000/- per annum. Investment under
this scheme qualifies for the benefit of Section 80C of the Income Tax Act,
1961.
Also read: What is NPS (national Pension System)?
Also read: Post Office Recurring Deposit Account
Also read: How to invest in mutual funds online?
Also read: How to start a SIP?
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