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Senior Citizen Savings Scheme (SCSS) is a government scheme. Therefore there is no risk of losing money in this. The special thing about this scheme is the interest received in it.
Investment in this government scheme can be started from ₹ 1,000.
New Delhi. Despite reduction in income after retirement, expenses remain. In such a situation, proper financial planning is very important. Therefore, it becomes necessary for senior citizens to invest their money in such a place from where they get good interest and the investment is also risk-free. Senior Citizen Savings Scheme (SCSS) is a safe and beneficial option for retired individuals, which provides financial stability with regular income. By investing lump sum in this scheme, you can avail the benefit of guaranteed income as well as tax exemption.
Senior Citizen Savings Scheme (SCSS) is a government scheme. Therefore there is no risk of losing money in this. The special thing about this scheme is the interest received in it. SCSS offers 8.2% annual interest. This interest is higher than other traditional investment options like FD. Also, by investing in this scheme, one gets the benefit of tax exemption under Section 80C of the Income Tax Act.
Also read- Income taxpayer must check this paper every quarter, there will be no hassle while filing ITR.
Guaranteed income of ₹2 lakh on investment of ₹5 lakh
According to the SCSS calculator, if a person invests a lump sum of ₹5,00,000, the total amount in 5 years will become ₹7,05,000. You will get interest of ₹ 2,05,000 in this. Interest of ₹ 10,250 will come to the account every quarter.
minimum investment
Investment in Senior Citizen Savings Scheme (SCSS) can be started from ₹ 1,000. A maximum of ₹ 30 lakh can be invested in this scheme. Its maturity period is 5 years. After 5 years the invested amount is returned with interest.
Who can invest?
- Senior citizens aged 60 years or above.
- Retired government employees aged 55-60 years, provided investment is made within one month of retirement.
- Retired defense personnel aged 50-60 years.
Tax rules on interest
If the annual interest from all SCSS accounts exceeds ₹50,000, TDS will be deducted. However, TDS will not be deducted on submission of Form 15G/15H.
Other features of SCSS account
Joint Account: Husband and wife can open the account jointly. Maximum investment limit is ₹30 lakh.
Interest Payment: Interest is paid on quarterly basis. It can be withdrawn from the savings account through auto credit or ECS.
New Delhi,New Delhi,Delhi
January 18, 2025, 12:27 IST
₹ 2 lakh guaranteed interest on deposit of ₹ 5 lakh, no risk of losing money