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Senior Citizens Savings Scheme Account (SCSS): Financial security is essential at every stage of a person's life, but as we grow older, we feel the need for financial independence the most. We look for an investment option that gives us a stable income to meet our daily needs. Or a source of income that reduces our dependence on others. The Senior Citizen Savings Scheme account is a popular scheme among senior citizens as it gives them a good amount of interest every three months after a lump sum investment. The Senior Citizen Scheme with guaranteed returns comes with a maturity of five years, which can be extended further. The scheme offers an annual interest rate of 8.2 per cent, and the deposit amount is eligible for tax exemption under Section 80C of the Income Tax Act. Not only this, if you use the maximum limit of investment, you can earn interest of Rs 61,500 in a quarter, Rs 2.46 lakh in a year and Rs 12.30 lakh in five years. Know how you can get this benefit. But moving on to the calculations, let us take a look at the key features of this post office scheme.
Senior Citizen Savings Scheme Account (SCSS): What is it?
This is a post office investment scheme that helps senior citizens to get income in the form of quarterly interest.
Individuals above the age of 60, retired civilian employees above the age of 55, or retired defense personnel above the age of 50 can invest up to Rs 30 lakh in a lump sum in this scheme.
This account can be opened individually or jointly with spouse.
He receives quarterly interest at an interest rate of 8.2 percent.
The maturity period of the scheme is five years, which can be extended for three more years within one year of maturity.
The minimum investment in this scheme can be Rs 1000 and in multiples of Rs 1000. The maximum investment in this scheme is Rs 30 lakh. This investment will be a lump sum.
Senior Citizen Savings Scheme Account (SCSS): Interest Rates
The SCSS scheme offers an interest rate of 8.2 per cent per annum.
In the first instance interest will be payable from the date of deposit till 31st March / 30th September / 31st December, and thereafter it will be payable on 1st April, 1st July, 1st October and 1st January.
Senior Citizen Savings Scheme Account (SCSS): Tax Rules
Deposits up to Rs 1.50 lakh in the Senior Citizen Scheme are tax-free under Section 80C of the Income Tax Act.
The interest received from this scheme is tax-free up to a limit of Rs 50,000. Tax and TDS have to be paid if the interest exceeds the limit of Rs 50,000.
Senior Citizen Savings Scheme Account (SCSS): Account Details
The account can be extended after five years from the date 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 Citizen Savings Scheme Account (SCSS): How to get Rs 61,500 interest per quarter?
If you want to get interest of Rs 61,500 per quarter, you will have to meet your investment limit.
This means your investment should be Rs 30 lakh.
At 8.2 percent interest rate, you can earn Rs 61,500 as quarterly interest.
In this way, you will get an interest of Rs 246,000 annually. In five years, it will become Rs 12,3000.
After five years, you can also withdraw your principal investment of Rs 30 lakh.