It has been proposed to exclude older individuals from submitting income tax returns if their only source of annual income is pension and interest income. Section 194P was recently added to oblige banks to withhold tax from elderly people over 75 who receive a pension and interest rate from the bank.
The Older People Savings Scheme (SCSS) is designed specifically for India’s senior citizens. The plan provides a steady source of income while also providing the maximum level of safety and tax savings. It is an excellent investment option for anyone over the age of 60. Let us check out the scss interest rate for the year 2021-2022.
What exactly is the SCSS plan?
A government-backed retirement benefits scheme is the Senior Citizens’ Saving Scheme (SCSS). Senior persons in India can invest a lump sum, either individually or collectively, in the plan and get a regular income as well as tax benefits.
What is an SCSS account, exactly?
A Senior Citizens’ Saving Scheme (SCSS) account is a Government of India-backed account that provides retirement benefits. Senior persons in India can take advantage of the account’s benefits by making a lump-sum investment in the plan, either individually or collectively. After retirement, the account will give monthly income as well as income tax benefits.
What is the purpose of SCSS?
Here are some of the reasons why you should choose SCSS:
- Because SCSS is a government-sponsored investment program in India, it is regarded as the safest and most reputable option.
- SCSS accounts are easy to set up and may be obtained from any recognized bank or post office in India.
- The account may be transferred anywhere in India.
- The plan pays a high scss interest rate on the deposit.
- Section 80C of the Indian Tax Act, 1961 allows you to deduct up to Rs.1.5 lakh in income tax.
- The account’s 5-year term can be extended for additional three years.
Interest Rates for SCSS 2021-2022
The SCSS interest rate has been decreased from 8.6 percent to 7.4 percent at this time. When compared to savings and fixed deposit (FD) accounts, the SCSS has a high return. Interest is payable on the deposit date of March 31, September 30, and December 31, in the first instance, and on March 31, June 30, September 30, and December 31 afterward. Interest is paid quarterly on the first working day of April, July, October, and January. Quarterly interest payments, on the other hand, are only possible at Core Banking-enabled post offices. Use the fd interest calculator to calculate the interest earned and the eventual maturity amount on your investment.
Which banks provide SCSS?
SCSS is available from the following banks:
- Bank of Baroda
- Bank of India
- Corporation Bank
- Allahabad Bank
- Andhra bank
- Bank of Maharashtra
- Central Bank of India
- Dena Bank
- IDBI Bank
- Indian Bank
- Indian Overseas Bank
- Punjab National Bank
- State Bank of India
- Syndicate Bank
- Union Bank of India
- Vijaya Bank
- ICICI Bank
Who is eligible to invest in SCSS?
Residents who meet the following conditions are eligible to invest in SCSS:
- India’s senior people (those aged 60 and up)
- Citizens in the 55-60 year age group who have chosen for the Voluntary Retirement Scheme (VRS) or Superannuation.
- HUFs and NRIs are not eligible to invest in this program if they are retired military personnel over the age of 50 and under the age of 60.
- Within a month of receiving the retirement benefits, the investment must be made.
The Senior Residents Savings Scheme (SCSS) was established to provide a regular income to senior citizens of the country after they reach the age of 60. The following are some of the scheme’s primary advantages:
- Benefits from the tax system are available.
- Investing in the plan is risk-free.
- The interest rate has been lowered from 8.6% to 7.4%.
- It is permissible to withdraw from the program early.
- The plan has several security elements and offers consumers a long-term savings option. Throughout the country, the SCSS is available at post offices and recognized banks.
- Can use fd interest calculator to calculate the interest earned.
