Senior Citizen Savings Scheme - SCSS - 8.6% - Deposit multiple of Rs.1,000, Maximum Rs. 15 lakh, Income Tax Benefit - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Saturday, September 24, 2016

Senior Citizen Savings Scheme - SCSS - 8.6% - Deposit multiple of Rs.1,000, Maximum Rs. 15 lakh, Income Tax Benefit

Senior Citizen Savings Scheme (SCSS)

Interest payable,

Rates, Periodicity etc.

From 1.4.2016, interest rates are as follows:-
o    8.6% per annum, payable from the date of deposit 
of 31st March/30th Sept/31st December in 
the first instance & thereafter, interest shall be
 payable on 31st March, 
30th June, 30th Sept and 31st December.

Minimum Amount for opening

 of account and maximum

balance that can be retained

There shall be only one deposit in the account in multiple of Rs.1,000 maximum not exceeding Rs. 15 lakh.

Salient features including Tax Rebate

An individual of the Age of 60 years or more may open the account.

An individual of the age of 55 years or more but less than 
60 years who has retired on superannuation or under
 VRS can also open account subject to the condition
 that the account is opened within one month of 
receipt of retirement benefits and amount should 
not exceed the amount of retirement benefits.
Maturity period is 5 years.

A depositor may operate more than one
 account in individual capacity or 
jointly with spouse (husband/wife).

Account can be opened by cash for the amount 
below Rs. 1 lakh and for Rs. 1 Lakh and above by cheque only.

In case of cheque, the date of realization 
of cheque in Govt. account shall be
date of opening of account.

Nomination facility is available at the time of opening 
and also after opening of account.


Account can be transferred from one post office to another

Any number of accounts can be opened in any 
post office subject to maximum investment 
limit by adding balance in all accounts.

Joint account can be opened with spouse 
only and first depositor in Joint account is the investor.

Interest can be drawn through auto 
credit into savings account standing at same post office, 
through PDCs or Money Order.

In case of SCSS accounts, quarterly interest 
shall be payable on 1st working day of April, July, 
October and January. It will be applicable at all CBS Post Offices.

*Quarterly interest of SCSS accounts standing at 
CBS Post offices can be credited in any 
savings account standing at any other 
CBS post offices.

Premature closure is allowed after one year 
on deduction of an amount equal to1.5% 
of the deposit & after 2 years 1% of the deposit.

After maturity, the account can be extended 
for further three years within one year 
of the maturity by giving application 
in prescribed format. 

In such cases, account can be closed 
at any time after expiry of one year of 
extension without any deduction.

TDS is deducted at source on interest 
if the interest amount is more than Rs. 10,000 p.a.


Investment under this scheme qualifies for
 the benefit of Section 80C of the 
Income Tax Act, 1961 from 1.4.2007.
Senior Citizen Savings Scheme - SCSS - 8.6% - Deposit multiple of Rs.1,000, Maximum Rs. 15 lakh, Income Tax Benefit Reviewed by S. Chitra on September 24, 2016 Rating: 5 Senior Citizen Savings Scheme (SCSS) Interest payable, Rates, Periodicity etc. From 1.4.2016, interest rates are as follows:- ...

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