New Delhi: Senior Citizen Savings Scheme (SCSS) is a guaranteed return scheme in which an individual above 60 years of age can invest. A joint account can also be opened with a spouse only. The Post Office is offering an interest rate of 8.2 percent per annum on this small savings scheme. You can open this scheme for 5 years. But it can be extended for next 3 years from the date of maturity. Here you have to make a one-time lump sum investment.
How much you can invest?
You have to make a one-time lump sum investment. A minimum of Rs 1000 can be invested in it. You can invest more in multiple of 1000 up to a maximum limit of Rs 30 lakh. You will get tax benefits under Section 80C of the Income Tax Act on the deposits made.
Interest Payable
Interest shall be payable on a quarterly basis. It is payable from the date of deposit to 31st March/30th June/30th September/31st December. You will not be able to earn additional interest if you have not claimed the interest in any quarter. Interest can be drawn through auto credit into a savings account.
Taxation
Interest is taxable if total interest in all SCSS accounts exceeds Rs 50,000 then you will have to pay tax on the interest. If form 15 G/15H is submitted and accrued interest is not above Rs 50,000 then, no TDS will be deducted. Now, let’s see how much return you will get if you invest Rs 1 lakh, Rs 2 lakh, Rs 5 lakh, and Rs 10 lakh each in Post Office SCSS. In this chart, the total duration of the scheme is 5 years and the interest rate is 8.2 percent per annum.
Amount
Total Interest
Quarterly Interest
Maturity Amount in 5 years
1 Lakh
₹ 41000
₹ 2,050
₹ 1,41,000
2 Lakh
₹ 82,000
₹ 4,100
₹ 2,82,000
3 Lakh
₹ 1,23,000
₹ 6,150
₹ 4,23,000
4 Lakh
₹ 1,64,000
₹ 8,200
₹ 5,64,000
5 Lakh
₹ 2,05,000
₹ 10,250
₹ 7,05,000
10 Lakh
₹ 4,10,000
₹ 20500
₹ 14,10,000
20 Lakh
₹ 8,20,000
₹ 41,000
₹ 28,20,000
30 Lakh
₹ 12,30,000
₹ 61,500
₹ 42,30,000
Premature Closure
Senior Citizen Savings Scheme (SCSS) can be closed prematurely anytime. However, no interest will be payable, if the account is closed before 1 year of opening. The post office will also recover the interest paid from the principle amount. If the account is closed during 1 year to 2 years, principal amount will be paid after deducting 1.5 percent of amount.
Post Office Senior Citizen Savings Scheme (SCSS): The Post Office is offering an interest rate of 8.2% per annum on Senior Citizen Savings Scheme. Its maturity period is of 5 years but can be extended for further 3 years. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
