The Senior Citizens Savings Scheme (SCSS) is a government-backed retirement plan for those aged over 60 years, which allows them to invest between ₹1,000 to ₹30 lakh for a period of five years, at annual interest rate of 8.2%.
Investment under the scheme also qualify for tax deduction up to ₹1.5 lakh under Section 80C of the Income-Tax Act. The accounts can be opened by public banks or at your nearest post office.
It is a good investment at a time when active earnings from employment start to moderate and provides a good and steady pad up to your pension stream with quarterly interest payouts.
- The scheme offers tax benefit for investments up to ₹1.5 lakh annually, under Section 80C of the ITA, reducing taxable income.
- Further, if the total interest in SCSS accounts exceeds ₹1 lakh per annum, TDS will be deducted. For those below 60 years, TDS will be deducted if the total interest exceeds ₹50,000 per annum.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
