Personal Development

Senior citizen savings scheme ( SCSS ) – Details, Benefits, & Opening Account

It has proposed to exempt the senior citizen from filing income tax returns if the pension income or interest income is the only source of earning. In addition, section 194P has been newly inserted to enforce the bank to deduct the tax on seniors with a pension and interest income.

Do you know that Senior Citizen Saving Scheme (SCSS) is only for the resident Indian? The scheme offers a regular stream of income with the highest saving and taxation benefits for the ease of their living.

SCSS is the popular scheme to give the major benefits to the senior citizen of India. Only the resident Indian is eligible for this scheme.

What is the SCSS Scheme? – Senior citizen savings scheme

The senior citizen Saving Scheme is a government bank retirement benefit provided to the senior citizens of India. Senior citizen restaurants in India from investing their lump sum in this scheme individually or jointly and getting access to the regular income and tax benefit.

What is SCSS in the Post Office?

Senior citizen Saving Scheme is one of the post office savings schemes. You can open an account under the SCSS in the post office like an authorized bank. You can visit the nearest post office branch or the branch where you hold savings to open the SCSS account. There are some eligibility criteria and features that should be followed for opening your account.

A senior citizen Saving Scheme account is an account that offers a retirement benefit to the senior citizens of India. Senior citizens residing in India can benefit from investing a lump sum amount either jointly or individually. In addition, the account will provide access to regular income post-retirement along with income tax benefits.

Why Choose SCSS?

Many people do not know the advantages of SCSS. Here are a few reasons why you should invest in SCSS:

  • It is a Government-sponsored investment scheme, and therefore it is safe and reliable to invest in.
  • The account is transferable across India.
  • The scheme offers high-interest rates on the deposit.
  • The SCSS account includes a simple procedure, and it is not complicated. It can be opened at any authorized bank or post office in India.
  • The 5-year tenure of the account can be extended for another 3 more years.

How many Accounts can one Open under this scheme?

You can deposit to the account in a single payment. Therefore, an account holder’s name operating more than one account under this scheme subject to certain terms and conditions on the deposit in all of the accounts that are taken shall not exceed the maximum limit of 15 lakh.

Also, more than one account cannot be opened in the same deposited branch during a calendar month.

See : National Pension Scheme: A Complete Overview

How to open an SCSS Account Online?

There is no option for you to open an SCSS account online. Neither the authorized banks nor the post office provides you with a platform to open the account online. Please follow the steps that should be taken offline for opening the account. The accout opening is simple and easy to avoid the chaos and confusion.

Tax Benefits under the SCSS

As per 80C of the Income Tax Act 1961, individuals are eligible for a tax deduction and investment up to 1.5 Lakh. If the interest generated is more than 10,000, the tax will be deducted at the source. The benefits is offered only to the senior citizen. If you want to planning to open the SCSS Account, visit your nearby bank or post office. There is no onlne process or form filling. You have to submit the application to the authorised bank offering SCSS to senior citizen.

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