Things you must know regarding senior citizen saving scheme (SCSS)

By the name we clearly understand that it is a scheme for senior citizens of India. This senior citizen saving scheme offers citizens above 60 yrs a regular income with the highest tax safety benefits.

For senior citizen saving scheme following people are eligible:

• Must be a citizen of India.
• Age must be above 60yrs.
• With a minimum of 50 yrs age, only retired defense personnel.
• NRIs and HUFs are not eligible for this scheme.

FD lock-in period: The FD lock-in period for Senior Citizen Saving Scheme is five years.

Maximum and minimum investments: You can invest a minimum amount of 1000 and a maximum of 15lakhs. However, if the investment amount is less than 1 lakh you can pay in cash. If the amount is more than 1 lakh then it can be paid by cheque.

Great Return: The interest rate on the SCSS account is 7.4% per annum (this interest rate fluctuates on a quarterly basis) for the first quarter (April to June) of the financial year 2020-2021, as of April 2020. This is a great rate as compared to a saving of the FD account.

Note: However, when you open a SCSS account the rate which will be considered in that time will remain unchanged regardless of the interest rate changing every quarterly.

Tax benefits: Under Section 80C of the Indian Tax Act, 1961 tax deduction of up to Rs 1.5 lakh can be claimed.

To Open SCSS account you must have these documents:

• To open an account you need to fill Form A.
• For identity you can present an aadhaar card, pan card, passport, etc.
• Age proof must be presented. It can be in the form of a pan card, birth certificate, passport, etc.
• You also need 2 passport size photographs.

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