What is the SCSS scheme?
A Senior Citizens’ Saving Scheme (SCSS) is a government-sponsored retirement savings plan. Senior persons in India can invest a lump sum, either individually or collectively, in the plan and get regular income and tax benefits.
What is an SCSS account?
A Senior Citizens’ Saving Scheme account is a Government of India-backed account that provides retirement benefits. Senior citizens in India can take advantage of the account’s benefits by making a lump-sum investment in the plan, either individually or collectively. After retirement, the account will offer monthly income as well as income tax benefits.
How SCSS works?
- Any payment owed to the account holder on account of retirement, whether through superannuation or otherwise, is referred to as retirement benefits. Provident fund dues, retirement or superannuation gratuities, commuted value of pensions, leave encashment, savings element of Group Savings Linked Insurance Scheme payable by the employer on retirement, retirement-cum-withdrawal benefit under the Employees’ Family Pension Scheme, and ex-gratia payments under a voluntary or special voluntary retirement scheme are all included.
- Interest can be withdrawn by ECS or auto credit into a savings account at the same Post Office location.
- The extension can be completed within one year of the maturity date.
- The deposit amount is limited to the retirement benefits received and must be put in the SCSS account within a month of receiving the employer’s retirement benefits.
Who is eligible to invest in SCSS?
Residents who cover the basic requirements are eligible to invest in SCSS:
- India’s senior people (those aged 60 and up)
- Citizens in the 55-60 year age group have chosen for the Voluntary Retirement Scheme (VRS) or Superannuation.
- HUFs and NRIs are not eligible to invest in this plan if they are retired military personnel over 50 and under the age of 60.
- Within a month of receiving the retirement benefits, the investment must be made.
What is the maximum number of SCSS accounts that a senior citizen can have?
Please keep in mind that you can make a single deposit to the account. As a result, an account holder may run several accounts under the programme as long as the total deposits in all accounts do not exceed the maximum limit, which is Rs.15 lakh. During a calendar month, no more than one account may be opened at the same deposit branch.
FAQ’s on SCSS Scheme
✅Is it possible for me to invest in SCSS every year?
The SCSS account can be transferred anywhere in the country. The account is created for five years, but it may be extended for another three years. It is one of the most secure investing alternatives for seniors.
✅Is SCSS exempt from paying taxes?
The government-sponsored Senior Citizen Savings Scheme is now paying a 7.4 per cent interest rate. In addition, section 80C tax advantages are offered. However, interest is fully taxable. Courtesy of Getty Images The plan will expire after five years, but it can be extended for another three years.
✅What are the alternatives offered for SCSS?
New Delhi: Several banks, including State Bank of India, HDFC Bank, and Bank of Baroda, are introducing special fixed deposit (FD) plans for elderly persons with higher interest rates on term deposits.
Table of Contents
- 1 What is the SCSS scheme?
- 2 What is an SCSS account?
- 3 How SCSS works?
- 4 Who is eligible to invest in SCSS?
- 5 What is the maximum number of SCSS accounts that a senior citizen can have?
- 6 FAQ’s on SCSS Scheme