Complete account of quarterly earnings on 8.2% interest in Post Office SCSS: How much return will you get on ₹ 10, ₹ 20 and ₹ 30 lakh?

Post Office Senior Citizen Savings Scheme (SCSS) remains the safest and highest interest yielding source of regular income for senior citizens. Backed by the Central Government, this scheme with an annual interest rate of 8.2% has interest paid directly into the investor’s bank or post office savings account every 3 months (on quarterly basis). The total tenure of the scheme is 5 years, which can be extended for a further 3 years after maturity.

In SCSS, interest is calculated on the basis of simple interest, because it is not compounded but is taken directly every quarter:

• annual interest = Deposit amount × 8.2%

• Quarterly Payout = Annual interest ÷ 4

• At ₹10 lakh: You will get ₹20,500 every quarter (i.e. an average of ₹6,833 per month).

• At ₹20 lakh: You will get ₹41,000 every quarter (i.e. an average of ₹13,667 per month).

• At ₹30 lakh: Depositing a maximum limit of ₹30 lakh will yield ₹61,500 every quarter (i.e. an average of ₹20,500 per month).

As per post office rules, SCSS interest amount is automatically transferred to the account on four fixed dates in a year:

1. 1 April (For January to March quarter)

2. 1 July (For April to June quarter)

3. 1 October (For July to September quarter)

4. 1 January (For October to December quarter)

• Section 80C Exemption: Under the old tax regime, the principal amount invested gets the benefit of deduction of up to ₹ 1.5 lakh under Section 80C of Income Tax.

• Tax and TDS on interest: The interest received from the scheme is fully taxable. For senior citizens, tax exemption on interest up to ₹ 50,000 is available under Section 80TTB. If the total annual interest exceeds the limit, banks/post offices deduct TDS. If the total annual income is less than the taxable limit, at the beginning of the financial year to avoid TDS Form 15H Can be deposited.