Senior Citizen Savings Scheme more interest in aging with advantage of tax savings
11 months ago sarkariadmin 0
“Senior Citizen Saving scheme” under this scheme old people can protect the regular income for themselves, This scheme also provide the advantage of tax saving. Those people who are over the age of 60 can go for this scheme.As people looks for investment option where they can invest their savings after retirement. This age people tend to avoid putting your money in equity because it carries the risk of capital loss, Senior Citizen Saving Scheme provides better options than this.
Who can invest in Senior Citizen Saving scheme?
All people of aged 60 years or above that can invest under this scheme. Also a different plan for people who are in between 55 years to 60 years during the period of voluntary retirement (VRS) can choose to invest in it too. Retired defense personnel, depending on age and other conditions can invest.
Note that : The expatriates (NRIs), HUF (HUFs) are not entitled to invest in the scheme.
How to make investment in Senior Citizen Saving scheme?
First open a bank account – 60 years or older people first need to go to a commercial bank or post office to open their bank account in case if they don’t have .They can open individual or a joint account.
How much investment you can do Senior Citizen Saving scheme?
The minimum amount for investment is Rs 1000. This amount may exceed as per requirement if any people want to invest more.
An individual cannot invest more than Rs 15 lakh in the SCSS. Deposits can be made in multiples of Rs 1,000. An individual can open more than one account by opting for a joint account with his spouse.
However, the investment limit of Rs 15 lakh applies to all accounts collectively. That is, an individual’s total investment in SCSS cannot breach the Rs 15-lakh ceiling.
How many accounts can be opened?
The scheme has no limit for account opening. No one can any more accounts opened, but that it is subject to all accounts should not exceed the maximum limit of the total amount invested.
Check necessary documents
Following is the list of the documents required for investing in the scheme:
(a) Duly filled application form, available at the post office or bank
(b) Know Your Customer (KYC) form
(c) Photographs of the applicant/s
(d) Permanent Account Number (PAN)
(e) Address proof
(f) Age proof
Proof of investment under scss – passbook is given, the date of opening the account, account number, name of the depositor, his photo graph, address and deposits went amount is recorded. It also marks the returns on a quarterly basis.
Interest on Senior citizen savings scheme on an annual basis is at the rate of 8.5 per cent. The finance ministry is also reviewed every quarter. However, the choice of compound interest earned on fixed deposits gets.The investment plan has a maximum period of 5 years. However, the maturity, the term may be extended once for 3 years. Premature withdrawals are allowed from this account. But it can be done only after a period of one year.
Tax savings under Senior Citizens’ Saving Scheme
The Senior Citizens Saving Scheme (SCSS) also offers tax benefits under Sec 80C and allows premature withdrawals. At the same time, there are a few problems that need to be fixed.