Senior Citizens Savings Scheme: Govt To Mop Up Rs 75,000 Crore, Know About this Scheme

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Senior Citizens Savings Scheme: Govt To Mop Up Rs 75,000 Crore, Know About this Scheme


Last Updated: February 17, 2023, 17:04 IST

Check particulars about Senior Citizens Savings Scheme. (Representative picture)

The price of curiosity on senior citizen saving scheme for the quarter ended March 31, 2023, is 8 per cent

The most investable quantity of the senior citizen financial savings scheme (SCSS) may mobilise Rs 75,000 crore. The authorities has elevated from Rs 15 lakh to Rs 30 lakh within the Union Budget 2023-24 (FY24). This will assist the federal government keep away from overshooting the projected web market borrowing of Rs 11.8 lakh crore for FY24, in accordance with a Business Standard report quoting a authorities supply. Here’re particulars concerning the senior citizen financial savings scheme:

What is a Senior Citizens Savings Scheme (SCSS)?

It is a small saving scheme. To open the account beneath the senior citizen financial savings scheme, minimal deposit of Rs 1,000 is required within the multiples thereof with most deposit of Rs 30 lakh (after Budget 2023).

There shall be just one deposit within the account in a number of of Rs 1,000 most not exceeding Rs 30 lakh. Multiple withdrawals from an account is just not permitted.

Who Can Open A Senior Citizens Savings Scheme Account?

An particular person who has attained the age of 60 years or above on the date of opening of an account or a person who has attained the age of 55 years or extra however lower than 60 years and has retired beneath Superannuation, VRS or Special VRS, can open an account.

Retired personnel of Defence Services (excluding Civilian Defence staff) also can open an account on attaining the age of fifty years topic to the fulfilment of different specified situations.

A depositor can open an account individually or collectively with a partner. However, the entire quantity of deposit in a joint account shall be attributable to the primary account holder solely.

Senior Citizens Savings Scheme Interest Rate

Interest shall be payable from the date of deposit to thirty first March/ thirtieth June/thirtieth September/thirty first December on 1st working day of April/July/October/January because the case could also be, within the first occasion and thereafter, curiosity shall be payable on 1st working day of April/July/October/January.

For the quarter ending March 31, 2023, the speed of curiosity on senior citizen saving scheme is 8 per cent.

Interest is taxable if complete curiosity in all SCSS accounts exceeds Rs.50,000/- in a monetary yr and TDS on the prescribed price shall be deducted from the entire curiosity paid. No TDS might be deducted if kind 15 G/15H is submitted and accrued curiosity is just not above prescribed restrict.

The account might be closed after expiry of 5 years from the date of opening of account. The depositor could lengthen the account for additional interval of three years.

Premature closure is permissible topic to sure situations. Deposits in SCSS qualify for deduction u/s 80-C of Income Tax Act.

Where to Open Senior Citizens Savings Scheme Account?

One can open Senior Citizens Savings Scheme account in banks and publish workplaces in India. Investment beneath this scheme qualifies for the good thing about part 80C of Income Tax Act, 1961.

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