Who can open senior citizen savings scheme? How much interest and amount
An individual of the age of 60 years or more may open the Senior Citizens Savings Scheme (SCSS) 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.
There shall be only one deposit in the account in multiple of INR.1000/- maximum not exceeding INR 15 lakh. Account can be opened by cash for the amount below INR 1 lakh and for INR 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. Joint account can be opened with spouse only and first depositor in Joint account is the investor.
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.
TDS is deducted at source on interest if the interest amount is more than INR 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.
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