Eligibility of Senior Citizens Saving Scheme (SCSS)
- Indian citizens who are older than 60 years.
- Retirees in the age bracket of 55-60 years who have opted for Voluntary Retirement Scheme/ Superannuation
- Retired defense personnel (RDP) above 50 years and below 60 years of age
- Hindu Undivided families and non-resident Indians are not eligible to invest in Senior Citizen Savings Scheme
How Do I Open a Post Office Senior Citizen Savings Scheme Account?
An SCSS account can also be opened at the post office. Senior citizens can open an account by going to the nearest post office and filling out the proper documents. The completed form must be submitted along with supporting documentation such as age proof, address proof, a cheque for the deposit amount, identity proof, and so on. The Post Office Senior Citizen Saving Scheme is well-known for its high-interest rate.
How to Open a Senior Citizen Savings Scheme Account at a Bank:
SCSS accounts are available at various public/private sector banks across India, in addition to post offices. Having an SCSS account with an authorized bank comes with its own set of benefits:
- The accumulated interest can be credited directly to the Senior Citizen Saving Scheme account holder’s savings account.
- Account statements are emailed or mailed at regular intervals.
- Phone banking provides round-the-clock customer service.
- Senior citizen aspirants can open an account by following the applicable Senior Citizen Saving Scheme account opening process, either online or offline.
Senior Citizen Saving Scheme
A Senior Citizens Saving Scheme (SCSS) is a government-sponsored retirement savings program. Senior citizens in India can invest a lump sum in the scheme, either individually or jointly, and receive regular income as well as tax benefits. It has been proposed to exempt senior citizens from filing income tax returns if their only annual income source is pension and interest income. Section 194P has been added to force banks to deduct tax on senior citizens over the age of 75 who receive a pension and interest income from the bank.
Important Terms/Definitions:
NRI: A non-resident Indian is a person who is an Indian citizen or of Indian origin but is not a resident of India.
HUF: It is meant for Hindu Undivided families. By forming a family unit and pooling assets to form a HUF, you can save taxes. HUF is taxed independently of its members. A Hindu HUF can be formed by a Hindu family. Hindu Undivided families can also be formed by Buddhists, Jains, and Sikhs. The HUF has its own PAN and files tax returns separately from its members.
Premature withdrawal: It is the withdrawal of funds from a fixed deposit account before the maturity date.