What is meant by Senior citizen savings scheme (SCSS)?

The Senior Citizens Savings Scheme (SCSS) is primarily for the senior citizens of India. The scheme offers a regular stream of income with the highest of safety and tax saving benefits.

  1. Eligibility: The following people/groups are eligible to opt for SCSS: 
    • Senior citizens of India aged 60 years or above. 
    • Retirees who have opted for the Voluntary Retirement Scheme (VRS) or Superannuation in the age bracket 55-60. Here the investment has to be done within a one month of receiving the retirement benefits. 
    • Retired defense personnel with a minimum age of 50 years. 
    • HUFs and NRIs are not allowed to invest in this scheme.
  2. Safe and Reliable: Since its an Indian government-sponsored investment scheme and is considered to be one of the safest investment options.
  3. Good returns: At 8.6 % the return rate is very good as compared to a savings or FD account.
  4. Tax benefits: Tax deduction of up to Rs 1.5 lakh can be claimed under Section 80C of the Indian Tax Act, 1961.
  5. Flexibility: The tenure of this investment scheme is flexible with an average tenure of 5 years which can be extended up to 3 additional years.

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