Senior Citizen Savings Scheme (SCSS)
Interest payable,
Rates,
Periodicity etc.
From
1.4.2016, interest rates are as follows:-
o 8.6% per annum, payable from the date of
deposit
of 31st March/30th Sept/31st December in
the first instance &
thereafter, interest shall be
payable on 31st March,
30th June, 30th Sept and
31st December.
Minimum Amount
for opening
of account and maximum
balance that can
be retained
There shall be only one
deposit in the account in multiple of Rs.1,000 maximum not exceeding Rs. 15
lakh.
Salient features
including Tax Rebate
An individual of the Age of 60 years or more may open the
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.
Maturity period is 5 years.
A depositor may operate more than one
account in
individual capacity or
jointly with spouse (husband/wife).
Account can be opened by cash for the amount
below Rs. 1
lakh and for Rs. 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.
Account can be transferred from one post office to
another
Any number of accounts can be opened in any
post office
subject to maximum investment
limit by adding balance in all accounts.
Joint account can be opened with spouse
only and first
depositor in Joint account is the investor.
Interest can be drawn through auto
credit into savings
account standing at same post office,
through PDCs or Money Order.
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.
Premature closure is allowed after one year
on deduction
of an amount equal to1.5%
of the deposit & after 2 years 1% of the deposit.
After maturity, the account can be extended
for further
three years within one year
of the maturity by giving application
in prescribed
format.
In such cases, account can be closed
at any time after expiry of one
year of
extension without any deduction.
TDS is deducted at source on interest
if the interest
amount is more than Rs. 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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