Small Savings Schemes Excellent interest is being given in the government’s savings scheme brought for senior citizens under the Small Savings Scheme. It has started with the beginning of the financial year.
Senior Citizen Savings Scheme: There are many types of pension schemes to ensure that the source of income is not affected even after retirement, in which better returns can be achieved by investing.
In order to spend the second inning of their life comfortably, everyone wants such an investment, in which a certain amount is returned and at the same time it also gives more interest than the rest. In such a situation, Senior Citizen Saving Scheme or Senior Citizen Saving Scheme (SCSS) is a good option under small savings schemes.
Currently, up to 8.2% interest is being received under this scheme, which gives more returns than any FD. The new rate has come into force in the first quarter of the financial year 2023-24. So let’s know about this small savings scheme.
Benefits are for a limited time
The benefit of enhanced interest rate under the Senior Citizen Savings Scheme has started from April and will continue till June 30, 2023. Talking about investment, it has a minimum deposit of Rs 1,000 and can be deposited up to Rs 15 lakh. However, there is talk of increasing this limit to Rs 30 lakh.
These people can open account
A senior citizen can open SCSS account either individually or jointly with spouse only. That is, any person above 60 years of age can invest in this savings scheme. However, NRIs and HUFs cannot invest in this scheme. Senior citizens are also allowed to prematurely close their SCSS account.
Tax exemption
The benefit of tax deduction is also available in this savings scheme which comes under Small Saving Scheme. Investment under this scheme is eligible for deduction under section 80C of the Income Tax Act. Also, if the interest earned is less than Rs 50,000 in a year then the account holder can save the amount deducted in TDS by submitting Form 15G/15H.
Get profits in five years
It is a short term investment scheme with a maturity time of five years. There is no charge of any kind for withdrawing money before the maturity time. At the same time, the interest received from the SCSS deposit is given to the account holder on a quarterly basis.
