Post Office SCSS: Senior Citizen Savings Scheme (SCSS) of the Post Office is a superhit savings scheme. This scheme has been specially designed for the post-retirement needs of senior citizens.
Post Office SCSS: Senior Citizen Savings Scheme (SCSS) of the Post Office is a superhit savings scheme. This scheme has been specially designed for the post-retirement needs of senior citizens. The best thing about this scheme is that it has to be invested in a lump sum and after maturity, you start paying fixed interest every quarter. In this scheme the money remains 100% safe. No matter how much the market fluctuates, there is no effect on your money.
Deposit on 5 lakh more than 7.2 lakh
On the Senior Citizens Scheme of the Post Office, the government has made the interest 7.6 percent annually (compounding) from October 1, 2022. The maturity of this scheme is 5 years. According to the compounding calculator, if you invest Rs 5 lakh in lump sum, your total corpus on maturity will be around Rs 7.21 lakh. Here you will get Rs 2.21 lakh as interest. In this way, every quarter interest will be Rs 11,058.
SCSS: Who can open an account
According to the information available on the post office website, the annual interest in this scheme will be 7.6 percent. In this, deposits can be made in multiples of 1000 rupees. Also, a maximum of Rs 15 lakh can be invested in it. A lump sum investment has to be made in this.
Under SCSS, a person of 60 years of age or more can open an account. If someone is 55 years or more but less than 60 years and has taken VRS then he can also open an account in SCSS. But the condition is that he will have to open this account within one month of receiving retirement benefits and the amount to be deposited in it should not be more than the amount of retirement benefits.
Husband / wife can also open account together
Under SCSS, the depositor can also maintain more than one account individually or jointly with his/her spouse. But taking all together the maximum investment limit cannot be more than 15 lakhs. With an amount less than 1 lakh, the account can be opened in cash, but for more than that amount, check will have to be used.
Nomination facility is available at the time of opening and closing the account in Senior Citizen Savings Schemes. This account can be transferred from one post office to another account. In this account holders can do premature closure. But the post office will only deduct 1.5% of the deposit on closing the account after 1 year of account opening, while 1% of the deposit will be deducted on closure after 2 years.
Know Tax Exemption and Tax Liability
There is also the benefit of tax deduction on deposits in the SCSS account. You can claim a deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act on investment in this scheme. However, interest income in SCSS is taxable. If the interest income of all your SCSS exceeds Rs 50,000 per annum, then your TDS starts getting deducted. The tax amount is deducted from your interest. If the interest income does not exceed the prescribed limit, then you can get relief from TDS by submitting Form 15G/15H.
