- Details
- Benefits
- Eligibility
- Exclusions
- Application Process
- Documents Required
- Frequently Asked Questions
- Sources And References
- Feedback
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Ministry Of Finance
Senior Citizens Saving Scheme
Banking
Finance
Senior Citizen
Details
The Senior Citizens’ Saving Scheme is a retirement benefit program by the Government of India. Individuals over 60 years can opt for the SCSS scheme by investing by making an individual or joint investment. In addition, this scheme provides tax benefits. In SCSS, the installment amount ranges between ₹1,000 and ₹15 lakhs. This amount is constricted to the retirement benefits. One must deposit it in the Senior Citizen Scheme account within a month from receiving retirement benefits from his/her employer. Moreover, if individual deposits more than the given amount, the additional funds get refunded to the account holder. One can extend the scheme for 3 more years from its date of maturity. The Interest Rate is 7.40% per annum (Q2 FY 2022-23). The Tenure is 5 years (with an option to extend it for 3 more years). The Minimum Investment Amount is ₹1,000. The Maximum Investment Amount ₹15,00,000 or the amount received on retirement, whichever is lower.
Benefits
Benefits:
- Hassle-Free Process: Individuals can open their accounts at any post office or authorized bank in India.
- SCSS Tax Benefits: Under Section 80C of the Income Tax Act, the principal amount invested in this scheme is eligible for deduction up to a limit of ₹1.5 lakhs in a year. Furthermore, interest earned on SCSS is taxable according to an individual’s tax slab. However, if the amount exceeds ₹50,000 for a fiscal, TDS (Tax Deducted at Source) is applicable.
- High-Interest Rate: SCSS offers an interest rate of 7.4% per year.
Features:
- Varying Interest Rates: The SCSS interest rate is modified once in every 3 months. Therefore, this rate of interest is subject to revision 4 times in a year.
- Assured Returns: The returns on this scheme are issued as it is a government-backed instrument. Moreover, contrary to market-linked investments, which are subject to fluctuations, SCSS is safe and offers assured returns to individuals.
- Maturity Duration: SCSS comes with a maturity period of 5 years. That said, one can extend the scheme for another 3 years by submitting a duly filled-up Form B. Nonetheless, in this regard, the interest rate as per the quarter is levied.
- Deposit Limit: Individuals can deposit a minimum of ₹ 1,000 to open their accounts. Moreover, one can deposit ₹ 15 lakh or the amount of retirement benefit, whichever is lower.
- Account Closure: Deductions are made against premature withdrawals. If closed before a period of 2 years, 1.5% deduction will be made as a penalty. Furthermore, if closed after 2 years, 1% is deducted. However, for extended accounts, one can withdraw funds post one year without attracting penalties.
- Quarterly Disbursals: One can expect quarterly disbursements against the deposited amount. The interest gets credited to the account on the 1st of April, July, October, and January.
- Nomination Option: The account holder can register a nominee to the Senior Citizens Saving Scheme. So, if the account holder passes away before maturity, the nominee will receive the due amount.
Eligibility
- Indian citizens above the age of 60 years
- Retirees in the age bracket of 55-60 years who have opted for Voluntary Retirement Scheme (VRS) or Superannuation*
- Retired defense personnel above 50 years and below 60 years of age*
(*Investment must be made within a month of availing the retirement benefits.)
Exclusions
Hindu Undivided Family (HUFs) and Non-resident Indians (NRIs) are not eligible to invest in Senior Citizen Savings Scheme.
Application Process
Offline
Online
- Visit your nearest bank branch or post office and collect the application form.
- Submit the duly filled-up form along with the self-attested copies of the required documents.
Documents Required
- KYC Documents: Aadhaar Card, Voter ID Card, PAN Card, Passport
- Utility Bills: Telephone bill, Electricity bill
- Senior Citizen Card or Birth Certificate (Case Specific)
- 2 passport-size photographs
Frequently Asked Questions
How Can I Open A Senior Citizen Savings Schemes Account Online?
Online application facility is not available for SCSS. In order to open a SCSS account, the customer must visit the post office or bank branch and fill up the related form. The same form should be attached with KYC documents, age proof, ID proof, Address proof and cheque for deposit amount.
Is 80C Applicable On Senior Citizen Savings Schemes?
Yes, investments made in SCSS are eligible for income tax deduction benefits under the Section 80C of Income Tax Act, 1961.
Can I Open A Senior Citizen Saving Account With SBI Bank?
Yes, any eligible candidate can open a senior citizen savings account with banks such as the State Bank of India. However, according to SBI’s guidelines, a depositor can hold two or more SCSS accounts only if the deposits in all accounts taken together do not exceed Rs.15 lakh.
What Is The Maximum Age Of Senior Citizen Saving Account Opening?
Any individual, above the age of 60, can open Senior citizen savings account accompanied by all the required documents.
What Is The Eligibility Criteria Of Joint Senior Citizen Saving Account?
While opening a joint SCSS account, the age of first depositor is supposed to be above 60 years. However, there is no age limit for the second applicant. The joint account can be opened only with the spouse. However, the entire amount in a joint account will be attributable only to the first account holder.
Can Both The Spouses Open Separate Accounts?
Yes, individual accounts can be opened as well, provided the deposit limit is a maximum of Rs.15 lakh. Of course, it has to adhere to the rules of the scheme.
Is There Any Income Tax Rebate / Exemption?
Yes, tax deduction of up to Rs.1.5 lakh can be claimed under Section 80C of the Indian Tax Act, 1961.
Is TDS Applicable To The Scheme?
Yes if the interest exceeds Rs.10,000 per annum, TDS is applicable. In this scheme, interest payments are no exemption to deduction of tax at source.
Any Minimum Limit Has Been Prescribed For Deduction Of Tax At Source?
As per government regulations, tax has to be deducted at source as per the minimum balance.
Can A Person Holding A Power Of Attorney Sign For The Nominee In The Nomination Form?
No, a person holding a Power of Attorney cannot sign in place for the nominee in the nomination form.
In Case Of A Joint Account, If The First Holder / Depositor Expires Before Maturity, Can The Account Be Continued?
Yes, the nominee can hold the account of the expired depositor in case of a death, provided it pertains to the SCSS Rules.
Is There Any Fee Prescribed For Nomination And / Or Change / Cancellation Of Nomination?
No fee is charged.
Can An Account Holder Obtain Loan By Pledging The Deposit / Account Under The SCSS, 2004?
Periodic withdrawals for loans are not possible in this scheme as it defies the very nature of the scheme.
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You're being redirected to an external website. By proceeding, your details will be shared with the relevant department.
Your mobile number will be shared with Jan Samarth and you will be redirected to external website.
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You have already submitted an application for this scheme. You may apply again only after 30 days i.e. after
It seems you have already initiated your application earlier.To know more please visit
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Check Eligibility
Ministry Of Finance
Senior Citizens Saving Scheme
Banking
Finance
Senior Citizen
Details
Benefits
Eligibility
Exclusions
Application Process
Documents Required
Frequently Asked Questions
The Senior Citizens’ Saving Scheme is a retirement benefit program by the Government of India. Individuals over 60 years can opt for the SCSS scheme by investing by making an individual or joint investment. In addition, this scheme provides tax benefits. In SCSS, the installment amount ranges between ₹1,000 and ₹15 lakhs. This amount is constricted to the retirement benefits. One must deposit it in the Senior Citizen Scheme account within a month from receiving retirement benefits from his/her employer. Moreover, if individual deposits more than the given amount, the additional funds get refunded to the account holder. One can extend the scheme for 3 more years from its date of maturity. The Interest Rate is 7.40% per annum (Q2 FY 2022-23). The Tenure is 5 years (with an option to extend it for 3 more years). The Minimum Investment Amount is ₹1,000. The Maximum Investment Amount ₹15,00,000 or the amount received on retirement, whichever is lower.
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