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Senior Citizen Saving Scheme (SCSS)
The Senior Citizen Savings Scheme (SCSS) is a government-backed retirement benefits program. Senior citizens in India can invest a lump sum in the scheme, either individually or jointly, to get regular income as well as tax benefits. It is a saving scheme offered by the Post Office.
Feature | Senior Citizen Savings Scheme (SCSS) |
Investment Type | Fixed-income deposit scheme |
Eligibility | Individuals aged 60 years or above (or 55 years or above for retired defence personnel and retired government employees) |
Minimum Investment | Rs. 1,000 |
Maximum Investment | Rs. 30 lakh |
Interest Rate (as of July 4, 2024) | 7.4% p.a. (interest reviewed quarterly) |
Maturity Period | 5 years (extendable for 3 more years) |
Liquidity | Low, premature closure with the penalty |
Risk | Low (backed by the Government of India) |
Under Section 80C of the Income Tax Act, 1961, individuals are eligible for tax deductions on investments up to Rs.1.5 lakh. If the total interest in all SCSS accounts exceeds Rs.50,000 p.a., TDS will be deducted.
