Senior citizen saving scheme (SCSS) is best interest paying scheme for eligible senior citizens - 60 years.
Investment in this scheme is also eligible for deduction under the income tax (IT) act section 80C. Interest in this scheme is 9.3% per year,which is quarterly compounding.
** 26. Are Non-resident Indians, Persons of Indian Origin and Hindu Undivided Family eligible to invest in the SCSS, 2004?
Non resident Indians (NRIs), Persons of Indian Origin (PIO) and Hindu Undivided Family (HUF) are not eligible to invest in the accounts under the SCSS, 2004.
If a depositor becomes a Non-resident Indian subsequent to his/her opening the account and during the currency of the account under the SCSS Rules, the account may be allowed to continue till maturity, on a non-repatriation basis & the account will be marked as a Non-Resident account. [Rule 13 and GOI letter F.No.2 / 8 / 2004 / NS-II dated June 19, 2006)
** 27. Can an account be transferred from one deposit office to another?
A depositor may apply in Form G, enclosing the Pass Book thereto, for transfer of his account from one deposit office to another.
If the deposit amount is rupees one (1) lakh or above, a transfer fee of rupees five (5) per lakh of deposit for the first transfer and rupees ten (10) per lakh of deposit for the second and subsequent transfers shall be payable. [Rule 11 and GOI Notification GSR.(E) dated March 23, 2006)
** 28. Can an SCSS account be extended?
A depositor may extend the account for a further period of three (3) years by making an application to the deposit office within a period of one year after maturity.
** 29. Does an account, which is not extended on maturity, earn any interest?
In case a depositor does not close the account on maturity & also does not extend the account, the account will be treated as matured & the depositor will be entitled to close the account at any time subject to the condition that the post maturity interest at the rate as applicable to the deposits under the Post office Savings Accounts from time to time will be payable on such matured deposits upto the end of the month preceding the month of the closure of the account.
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