Senior Citizens Savings Scheme Account (SCSS) provides guaranteed returns in the form of quarterly interest to senior citizens. They get 8.2 per cent interest annually under this retirement-focussed scheme, which also provides tax exemption on deposits under Section 80C of the Income Tax Act. One can start a SCSS account with a minimum one-time investment of Rs 1000 or with a maximum of Rs 30 lakh. The scheme can provide senior citizens with a quarterly interest of Rs 61,500 if they invest a certain amount. Know calculations-
Senior Citizens Savings Scheme Account (SCSS): Financial security is necessary in every stage of a person’s life, but as we grow older, we feel the need for financial freedom the most. We look for an investment option that gives us a steady income to meet our daily requirements. Or a source of income that lessens our dependency on others. Senior Citizens Savings Scheme Account is a popular scheme among senior citizens as it gives them a sizeable interest every three months after a one-time investment. The guaranteed return senior citizen scheme comes with five years of maturity, which can be extended further. The scheme provides an annual interest rate of 8.2 per cent, and the deposits qualify for tax exemption under Section 80C of the Income Tax Act. Not just that, if you use the maximum limit of investment, you can earn Rs 61,500 interest quarterly, Rs 2.46 lakh in a year, and Rs 12.30 lakh in five years. Know how you can get that benefit. But moving onto calculations, let’s have a look at the salient features of this post office scheme.
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Senior Citizens Savings Scheme Account (SCSS): What is it?
It is a post office investment scheme that helps senior citizens get income in the form of quarterly interest.
Individuals above 60 years, retired civilian employees above 55 years, or retired defence employees above 50 years can invest in the scheme as a one-time investment up to Rs 30 lakh.
The account can be opened individually or jointly with a spouse.
At an 8.2 per cent interest rate, they get the quarterly interest.
The maturity period of the scheme is five years, which can be extended for three more years within one year of maturity.
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Senior Citizens Savings Scheme Account (SCSS): Minimum and maximum investments
The minimum investment in the scheme is Rs 1000 and in the multiples of Rs 1000. The maximum investment in the scheme is Rs 30 lakh. These investments will be one-time.
Senior Citizens Savings Scheme Account (SCSS): Interest rate
The SCSS scheme provides an interest rate of 8.2 per cent annually.
The interest is payable from the date of deposit to March 31/Sept 30/December 31 in the first instance, and thereafter, it will be payable on April 1, July 1, October 1, and January 1.
Senior Citizens Savings Scheme Account (SCSS): Tax Rules
Deposits up to Rs 1.50 lakh in the senior citizen scheme are tax-exempt under Section 80C of the Income Tax Act.
The interest one gets from the scheme is tax-exempt up to the Rs 50,000 limit. Beyond the Rs 50K limit, one has to pay the tax and TDS.
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Senior Citizens Savings Scheme Account (SCSS): Account extension
One can extend the account after five years of maturity. It can be extended for another three years from the date of maturity.
But it can be extended only within one year of maturity.
Senior Citizens Savings Scheme Account (SCSS): How to get Rs 61,500 quarterly interest
If you want to get Rs 61,500 quarterly interest, you need to exhaust the limit of your investment.
It means your investment should be Rs 30 lakh.
At 8.2 per cent interest rate, you can earn Rs 61,500 in quarterly interest.
In that way, the yearly interest you will get will be Rs 246,000. In five years, it will be Rs 12,3000.
After five years, you can also withdraw your original investment of Rs 30 lakh.
