Thread by @FinologyInsider

9 things to know about Senior Citizen Saving Scheme:

• What SCSS offers?
• Eligibility
• Interest Rates
• Account opening procedure
• Taxation
• Maturity Period
• Minimum & Max Deposit
• Tenure
• Lapse of Scheme

– A Thread🧵⤵️ –

• What SCSS offers?

This scheme comes in as a viable investment option for retired as well as Senior citizens. It is one such parkway which aims at delivering safe & viable investment options.

#Seniorcitizen #IndianEconomy

• Eligibility

The Eligibility criteria of individual investors must be at least 60 years & above. This scheme also includes retired defence personnel with a minimum age of 50 yrs.

People who are not allowed to invest in SCSS are NRIs & HUFs.

• Interest Rates

Generally, the interest rate of SCSS is greater in comparison to other alternatives. Also, every quarter, govt revises the interest rates of this scheme & currently it is offering 8% p.a interest.

• Account opening procedure

You can either go to post office or private/public bank to open an account. The procedure includes:

1. Visit your nearest branch & you are required to duly fill your form A.

2. Submit all the necessary documentation. This includes both the original documents as well as photocopies.

3. After this, you have to produce proof of age or age proof.

• Taxation

Under sec 80c, investment under SCSS is tax deductible with a limit of 1.5 lac p.a.

However, interest received on SCSS is entirely taxable. If in case, the interest amt received exceeds Rs 50,000 for a fiscal, the TDS is applicable to the interest earned.

• Maturity Period

The maturity period of SCSS is 5 years. It can be extended for another 3 years by filling the Form B. Also, an extension is allowed only once.

• Minimum & Max Deposit

Minimum Deposit is Rs 1000 & maximum one can invest up to Rs 30 lakhs or the amount received on it, whichever is lower.

• Tenure

Tenure to invest in this scheme is 5 years. However, one can extend the tenure by 3 years.

• Lapse of Scheme

If a person is nt able to invest or wants to close the account, this will only be allowed once the scheme has completed 1 year.

However, 1.5% & 1% charge of total amt deposited will be charged in case of premature withdrawal after 1 & 2 year respectively.

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