Get Instant Loan up to ₹10 Lakh!
The Senior Citizens Savings Scheme (SCSS) is a government-backed savings initiative tailored for senior citizens to ensure a secure and regular income post-retirement. With guaranteed returns, tax benefits, and a straightforward process, it is one of the most reliable financial tools available for retired individuals in India. This scheme is available through Post Offices and authorised banks, providing flexibility and accessibility to investors. Here’s everything you need to know about this scheme.
The following individuals are eligible to open an SCSS account:
Section 80C deduction: Deposits made under SCSS qualify for a tax deduction of up to ₹1.5 lakh per year under Section 80C of the Income Tax Act. This helps reduce taxable income significantly for senior citizens.
Taxability of interest: While the interest earned on SCSS deposits is fully taxable, no TDS (Tax Deducted at Source) is applicable if the annual interest income is below ₹50,000 for senior citizens. This exemption helps most investors avoid additional tax deductions.
The Senior Citizens Savings Scheme provides the flexibility of premature closure, allowing account holders to withdraw their funds before the scheme's maturity in case of emergencies. However, this is subject to specific conditions:
The Senior Citizens Savings Scheme is an ideal investment choice for retirees and senior citizens looking for a secure, high-return, and government-backed savings plan. With features like a competitive interest rate of 8.2% per annum, tax deductions under Section 80C, and flexibility through premature closure, SCSS addresses both the need for financial safety and regular income.
Rohit Gyanchandani is Managing Director at Nandi Nivesh Private Limited
Catch all the Instant Personal Loan, Business Loan, Business News, Money news, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.