Last Update: February 17, 2023, 17:04 IST
Check details about Senior Citizen Savings Scheme. (Representational Image)
The interest rate on Senior Citizens Savings Scheme is 8 per cent for the quarter ending March 31, 2023.
The maximum investible amount that the Senior Citizens Savings Scheme (SCSS) can raise is Rs 75,000 crore. The government has increased it from Rs 15 lakh to Rs 30 lakh in the Union Budget 2023-24 (FY24). This will help the government avoid an estimated net market borrowing of Rs 11.8 lakh crore for FY24. trade standard Here are the details about the Senior Citizens Savings Scheme, reports quoting government sources:
What is Senior Citizen Savings Scheme (SCSS)?
This is a small savings scheme. To open an account under the Senior Citizens Savings Scheme, a minimum deposit of Rs 1,000 in multiples thereof is required to be deposited up to a maximum of Rs 30 lakh (after Budget 2023).
A single deposit in the account shall not exceed a maximum of Rs 30 lakh in multiples of Rs 1,000. Multiple withdrawals are not allowed from one account.
Who can open Senior Citizen Savings Scheme Account?
An individual who has attained the age of 60 years or more on the date of opening of the account or an individual who has attained the age of 55 years or more but is less than 60 years and is under retirement, VRS or special VRS Has retired, open account.
Retired personnel of Defense Services (excluding civilian defense employees) can also open the account on attaining the age of fifty years, subject to fulfillment of other specified conditions.
A depositor can open the account individually or jointly with the spouse. However, the entire amount of deposit in a joint account will be due only to the first account holder.
Senior Citizen Savings Scheme Interest Rate
Interest will be payable on the first working day of April/July/October/January from the date of deposit till March 31/June 30/September 30/December 31, as the case may be, in the first instance and thereafter, interest will be payable on April/July /on the first working day of October/January.
The interest rate on the Senior Citizens Savings Scheme is 8 per cent for the quarter ending March 31, 2023.
Interest is taxable if the total interest in a financial year across all SCSS accounts exceeds Rs.50,000/- and TDS at the prescribed rate will be deducted from the total interest paid. No TDS will be deducted if Form 15G/15H is submitted and the interest earned does not exceed the prescribed limit.
The account can be closed after the expiry of 5 years from the date of opening of the account. The depositor can extend the account for a further period of 3 years.
Premature closure is permitted subject to certain conditions. The amount deposited in SCSS qualifies for deduction under section 80-C of the Income Tax Act.
Where to open Senior Citizen Savings Scheme Account?
Anyone can open a Senior Citizen Savings Scheme account in banks and post offices in India. Investment under this scheme is eligible for the benefit of section 80C of the Income Tax Act, 1961.
read all latest business news Here