The collections under the revamped Senior Citizen Savings Scheme (SCSS) jumped 176% on year to Rs 55,000 crore in the first quarter of the current financial year.
About Senior Citizen Savings Scheme (SCSS):
- SCSS was launched with the main aim of providing senior citizens in India a regular income after they attain the age of 60 years old.
- Who is eligible?
- Indian citizens above the age of 60 years.
- Retirees in the age bracket of 55-60 years who have opted for Voluntary Retirement Scheme (VRS) or Superannuation.
- Retired defence personnel above 50 years and below 60 years of age.
- Maturity: It has a maturity period of five years. But, a depositor can extend one's maturity period for another three years.
- Number of accounts: Individuals are allowed to operate more than one account by themselves or open a joint account with their spouse.
- Deposit Limits: Eligible investors can make a lump sum deposit
- Minimum Deposit– Rs. 1,000 (and in multiples thereof)
- Maximum Deposit– Rs. 30 Lakh.
- Interest Payment: Under SCSS, the interest amount is paid to the account holders quarterly.
- Premature withdrawal: After one year of opening the account, premature withdrawal is allowed.
- Deposits in SCSS qualify for deduction u/s 80-C of Income Tax Act.
Q1) What is Section 80-C of Income Tax Act?
section 80C is one of the most popular and favorite sections amongst taxpayers as it allows them to reduce taxable income by making tax-saving investments or incurring eligible expenses. It allows a maximum deduction of Rs 1.5 lakh every year from the taxpayer's total income. The benefit of this deduction can be availed by Individuals and HUFs. Companies, partnership firms, and LLPs cannot avail the benefit of this deduction.