A Senior Citizen Savings Scheme (SCSS) is a government-sponsored retiral benefits project. Senior citizens resident in India can infuse an annuity in the strategy, separately or cooperatively, and get ingress to regular income together with tax benefits.
The present interest rate appropriate to SCSS is 7.4%. Tax benefits below Section 80C are accessible but interest is totally taxable. Getty Images The strategy is full-grown at the end of 5 years but is expandable by a further three years.
It has been put forward to excuse the senior citizens from categorizing income tax returns if annuity income and interest income are their only yearly income origin. Section 194P has been newly placed to impose the banks to abstract tax on senior natives more than 75 years of age who have pensions and interest emolument from the bank.
The Senior Citizen Savings Scheme (SCSS) is basically for the senior citizens of India. This strategy provides a constant streamlet of earnings with inflated safety and tax-saving advantages. It is a felicitous choice of investment for those who are above 60 years of age.
How SCSS works?
- Enroll an SCSS account by deposition of a minimum amount of Rs.1,000 up to Rs.15 lakh in a solitary installment plan.
- Retirement advantages here mean any payment awaited to the account possessor on account of seclusion on obsoleteness or else. It comprises prudent fund dues, retirement or obsoleteness recompense, attenuates values of pension, leaves encashment, savings component of Group Savings Associate Insurance Strategy owed by the proprietor on retirement, retirement-cum-abolition advantage below the Employees’ Family Annuity Scheme, and nonrefundable payments under a voluntary or a specific voluntary retirement strategy.
- If the deposit is in surplus to the vaulting amount, the overindulgence amount shall be reimbursed to the account holder instantly.
- Engrossment on the deposit will be paid one time every traverse.
- Interest can be drained through auto credit into the frugality account held at the same Post Office branch or through ECS.
- The account can be preterm closed at any time, after the date of opening.
- The account may be expanded for a further period of 3 years from the date of majority.
- The augmentation can be done within 1 year from the date of majority.
What is an SCSS account?
A Senior Citizen Savings Scheme (SCSS) account is an account that offers retirement advantages and is subsidized by the Government of India. Senior citizens inhabit in India can assist the advantages of the account by investing a lump sum in the strategy, either separately or cooperatively. The account will offer ingress to constant income post-retirement along with income tax advantages.
Procedure to Open an Senior Citizen Savings Scheme Account
An SCSS account can be open at a bank or at any post office. The procedure to open an SCSS account is given below:
- Come upon the nearest any post office or bank branch office.
- Put forward the solicitation form with the KYC documentation.
- A cheque for the amount that is being settled must be offered.
- You can add applicants to the account.
How many accounts can be opened below SCSS by a senior citizen?
Kindly note that you can make the deposit to the account in a solitary payment. Consequently, an account holder may utilize more than one account under the strategy subject to the condition that deposits in all the accounts taken cooperatively might not outreach the maximum limitation, i.e. Rs.15 lakh. Further, more than one account might not be opened in the same deposit branch office during a calendar month.
The eligibility standard for the SCSS is given under:
- A solitary who has accomplished the limitation age of 60 years or more at the time of opening an SCSS account.
- Personal who have accomplished the age of 55 years old, but are under the age of 60 years old and have retired on obsoleteness are capable to open an SCSS account.
- Under the SCSS, retired Defence Services staff are capably disregarding of their age. Although, some other special conditions must be converged by these solitaries.
- Non-Resident Indians (NRIs) are not capable to open an SCSS account.
- Hindu Undivided Families are not suitable to open an SCSS account as well.
Documentation required for opening an Senior Citizen Savings Scheme account
Given under are the necessary papers that solitaries should capitulate in a serial order to open an SCSS account:
- 2 passport-size photos
- Form A should be thoroughly filled and submitted.
- Identity proofs such as a Passport or Permanent Account Number (PAN) Card should be put forward.
- Solitaries must submit proof of current address such as aadhar card or telephone bills.
- A deed confirming the individual’s age should be submitted. Age verification documents like PAN Card, Voter ID, Birth Certificate, Senior Citizen Card, or Passport.
All the necessary documents that are submitted to open an account should be self-avouch.
Which banks provide SCSS?
The under given banks provides SCSS:
- Allahabad Bank
- Andhra bank
- Bank of Maharashtra
- Bank of Baroda
- Bank of India
- Corporation Bank
- Central Bank of India
- Dena Bank
- IDBI Bank
- Indian Bank
- Indian Overseas Bank
- Punjab National Bank
- State Bank of India
- Syndicate Bank
- UCO Bank
- Union Bank of India
- ICICI Bank
Further, the Post Office also provides SCSS.
Tax advantages below SCSS
Below Section 80C of the income tax act, 1961, solitaries are suitable for tax subtractions on investments up to Rs.1.5 lakh. In case the interest caused is more than Rs.10,000 per annum, the tax will be subtracted at the origin.
What is the present interest rate of SCSS?
The recent interest rate appropriate to SCSS is 7.4% p.a. This rate is relevant from 1 July 2021 to 30 September 2021.
Where to open an SCSS account?
You can open an SCSS account at an authorized bank branch office or at a Post Office branch. If the bank permits, you can open the SCSS account online on the bank’s internet banking egress or mobile banking application. There is no other choice to open the SCSS account online with the Post Office.
How to open an SCSS account online?
As of now, there is no possibility for you to open an SCSS account online. Either do the authorized banks nor the Post Office offers you a manifesto to open the account online. Please come after the steps given above to open the account offline.
How to fill the Post Office SCSS implementation form?
You can gather the SCSS implementation form either at the Post Office branch office or on the official given site of the Office. The procedure of filling the solicitation form is:
- Go in for the Post Office branch name on the top left corner of the formation.
- If you so far have a savings account with the Post Office, write the account number.
- Below the ‘To’ section, enter the branch address of the Post Office.
- Paste the account holder’s photo
- Hence, write the account holder’s name in the first blank space and touch on the ‘SCSS’ option amid the other given options.
- No need to choose any choices offered below the ‘Additional Facilities Available’ section as they are justifiable only if you are appealing to open a savings account.
- Now, choose the account holder kind, i.e. self, minor through custodian, or person of unstable mind through preserver.
- Choose the account sort, whether solitary, either or conqueror, or all or survivor.
- Now Move to row number 2 where you have to write the deposit amount in figures and then in words. If you hand over a cheque, write down the cheque number and date.
- Write the personal details of the account possessor.
- Select the cells where you have offered the requested documentation proofs at the end of the table.
- Signatures of all the account possessors must be added at the end of page 1 of the form and on Page 2.
- Mention the applicant for the account and the pertinent details of the applicant you have selected. Add the signatures of all account possessors to authenticate this information.
What dominant things to keep in mind while opening an SCSS Account
Before you open a Senior Citizen Savings Scheme account, make sure that you furnish all the compulsory information that has been asked. If it is found that the information given by you is incorrect or false, the account might be closed with an instant effect. The deposited amount will be reimbursed to the depositor after the subtraction of interest that has already been reimbursed into the account.
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