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Overview of Senior Citizen Saving Scheme (SCSS)

Do you intend to cave in a perfect tool that eases up your old age and helps you walk tall with your head held high? SCSS can do that for you when you turn out to be the senior citizens of the society. Let’s delve deep into what you should know about SCSS to make your old age worth living.

Senior citizen saving scheme

Senior members of the society need a perfectly balanced lifestyle which should be sans all sorts of hindrance and fiscal anxieties. As matter of fact, it is the precise phase in their lives when they need everything to settle down in a pitch perfect manner. This is where SCSS is going to be of much use to you as a senior member of the society. SCSS is also known as the senior citizen saving scheme, which appears to be the best friend of an aged person.

Every senior citizen who is a permanent resident of India does have the right to get profits out of this highly popular investment vehicle. If the discussion concerns a befitting and profitable investment portfolio for you in the present scenario then the name of SCSS should pop up in your mind along with other veritable or reliable options such as PPF, high yielding mutual funds, Sukanya Samriddhi, NSC etc.

What is SCSS Scheme?

If you are a senior member of the society, you can get the assurance to use SCSS Scheme. It is a powerful tool for the aged persons which they can use in their old age and they can have a pretext to make their lifestyle more secure and pleasant. The first thing that attracts many people towards the scheme is the ease of handling the scheme. It is in fact one of the biggest things related to your personal finance for sure.

Eligibility for Senior Citizens Saving Schemes

Those individuals who have attained 60 years of age will be considered eligible to apply for this fantastic facility and avail themselves of an aura of safety and security at an infirm stage of their life. Thus, it is evidently no less than a good samaritan in the life of every senior member of the society.

How Much Can You Invest in SCSS Scheme?

If you are a single SCSS account holder then you are going to be entitled with the optimum range of 15 lakh. However, if you intend to open this account jointly with your spouse then the best margin that you can look forward to is 30 lakh for sure. In both the cases, it is like a win-win situation for you.

Senior Citizens Savings Scheme Interest Rates 2019

SCSS does step forward as a productive option for sure in terms of interest rates. As of July 2019, the interest rate available on the SCSS account is 8.6% per annum for the July to September 2019 quarter. This rate of interest is reviewed quarterly by the Ministry of Finance and subject to periodic change.

Benefits of SCSS Scheme

As you opt for the scheme, you get entitled to enjoy an array of benefits for sure. They are as follows-

  • Tax benefits
  • Hassle free
  • Highest safety
  • Payment on a regular basis.
  • Government products
  • Ease in the execution
  • Capital protection

Tax Benefits of Investing in Senior Citizens Savings Scheme

  • Investments made in a Senior Citizen Savings Scheme (SCSS) account qualify for income tax deduction benefit under Section 80C of the Income Tax Act, 1961.
  • Interest on SCSS is fully taxable. In case the interest amount earned is more than Rs. 50,000 for a fiscal, Tax Deducted at Source (TDS) is applicable to the interest earned. This limit for TDS deduction on Senior Citizen Savings Scheme (SCSS) investments is applicable from AY 2020-21 onwards.

Thing to Keep In Your Mind

If you happen to be an investor and if you intend to avail the benefits of SCSS, then you will need to furnish yourself with the precise information about your earning potential which would make you eligible for this option. If you have to get the benefits of this scheme then scheme you need to showcase that you earn at least 10625 Rs per month. This earning bracket is a must for every senior citizen of India who wants to invest in SCSS.

Considering all the aspects of SCSS covered in this petite discussion it would not be inappropriate to state that it is a dire necessity for the aged members of the society. It is coupled with both lucrative benefits and security. In the midst of present circumstances you can definitely treat SCSS as an epitome of optimism.

List of banks that offer SCSS Scheme

Given below is the list of banks that of the scheme:

Senior Citizen Saving Scheme Calculator

A number of financial organizations are offering this facility for the senior persons of the society. Day in and day out, this ratio is increasing with a galaxy of new financial service providers joining in this bandwagon. It is not inapt or strange on your part to get flabbergasted or confused considering which particular institute you should choose as your trusted fiscal partner. In the midst of such confusion a senior citizen saving scheme calculator is truly going to come handy. You can proficiently use this calculator and decide which service provider is going to provide you with the best value for your money. You can use the calculator to do the math in terms of the being provided.

Senior Citizens Savings Scheme Calculation Method

Deposits made into a Senior Citizens Savings Scheme (SCSS) account are compounded and paid out annually. These payouts are automatically credited to the savings account held with the post office/bank where this savings scheme account for senior citizens has been opened.

The interest rate on SCSS is currently 8.6% (as of Q2 FY 19-20). Assuming that you have deposited Rs. 25, 000 annually then your quarterly interest will be Rs. 538.

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