New Delhi: Seniors looking for an investment plan, which would provide them a fixed income every month after retirement, can opt for the Post Office’s Senior Citizen Savings Scheme. The savings scheme can help one earn a pension of Rs 20,500 per month. The scheme is designed for senior citizens, so that they do not have to worry about money in any way even after retirement. It is a government-controlled scheme and offers fixed and stable returns.
SCSS is best for senior citizens looking for a fixed income every month after retirement and that too without taking any market related risk.
In this scheme, an individual can invest a maximum of Rs 30 lakh, and earn an interest of about Rs 2 lakh 46 thousand annually. The depositor will get Rs 20,500 credited to his/her account. Currently, the government has fixed the interest rate at 8.2 percent, which is one of the highest rates available in any government scheme.
Initially, the limit of investment in SCSS was Rs 15 lakh, later the government increased it to Rs 30 lakh. The investments in this scheme have to be made lumpsum and the interest is credited to the beneficiary’s account every quarter.
SCSS Eligibility & Tax benefits
To become eligible for investing in this scheme, an individual should be 60 years of age or above and you should be an Indian citizen. Individuals who have attained the age of 55 and have retired early under a superannuation or Voluntary Retirement Scheme (VRS) rules, can also apply for the scheme. Retired defence personnel are also allowed to invest in SCSS if they meet the terms and conditions.
The SCSS deposits are fixed for 5 years and the depositor can extend the account for a further period of 3 years. Premature closure is permissible subject to certain conditions.
Deposits in SCSS qualify for deduction u/s 80-C of Income Tax Act. The investment amount is eligible for tax exemption of up to Rs 1.5 lakh under Section 80C.
The Senior Citizen Savings Scheme (SCSS) offers senior citizens a secure way to generate a fixed monthly income after retirement. With a maximum investment of Rs 30 lakh and an 8.2% interest rate, investors can receive approximately Rs 20,500 monthly. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
