Senior Citizen Savings scheme (SCSS)
The Indian citizens whose age is 60 years and above, can invest in Senior Citizen Savings Scheme to earn regular monthly income. Interest earned on deposits under this scheme is payable quarterly. There is a lock-in period of five years for the principal but premature withdrawal is allowed after the completion of one year after paying a penalty.
Eligibility to invest SCSS Scheme:
- Senior citizens of India aged 60 years or above.
- Retired who have opted for the Voluntary Retirement Scheme (VRS) or Superannuation in the age bracket 55-60. Here the investment has to be done within a month of receiving the retirement benefits.
- Retired defense personnel with a minimum age of 50 years.
- HUFs and NRIs are not allowed to invest in this scheme.
Limit of Investment:
The maximum amount one can invest is limited to 15 lakh. (Individually or Jointly investment can be made). The amount invested in the scheme cannot exceed the money that has been received on retirement.
Benefits of SCSS scheme
Safe
Interest 7.4%
Nomination facility is available at the time of opening an SCSS account
Tax deduction of up to Rs.1.5 lakh can be claimed under Section 80C of the Indian Tax Act, 1961.
Average tenure of this investment is 5 years which can be extended up to 3 additional years
Documents required to open SCSS account:
This account can be opened in any of the authorized banks or post office branch across India- Form A has to be filled for opening an SCSS Account.
- Identity proof like PAN card, Passport to be presented.
- Address proof such as Telephone bill, Aadhar card is mandatory.
- Document for proof of age is required. This could be in the form of a Passport, Senior Citizen Card, a Birth certificate issued by the Corporation or Registrar of Births and Deaths, Voter ID card, PAN card etc.
- 2 Passport size photographs.
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