SCSS Investment Limit: The Senior Citizen Savings Scheme (SCSS) is a government-guaranteed investment. Individuals over the age of 60 can invest in it and also offer tax savings.
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SCSS Investment Limit: If you want to stay free from financial worries even after retirement, SCSS is perfect for you. This isn’t a risky scheme, but rather a government-guaranteed investment that offers tax savings and good returns. Let’s understand step-by-step what it is and how to take advantage of it.
What is the Senior Citizen Savings Scheme?
The Senior Citizen Savings Scheme (SCSS) is for senior citizens above 60 years of age (or those aged 55-60 who have taken VRS). You can invest up to ₹30 lakh in one lump sum. The current interest rate is 8.2% per annum. This scheme is available at all post offices and select banks across the country.
If you invest ₹1.5 million in this scheme, you’ll earn around ₹10,250 in interest each month (calculated at 8.2% now). If you invest ₹3 million, you could earn up to ₹20,500 per month. This is locked in for 5 years, but you can extend it.
How can you save up to ₹1.5 million in taxes?
Investing in the Senior Citizen Savings Scheme (SCSS) provides a tax exemption of up to ₹1.5 million under Section 80C, which could save approximately ₹45,000 annually for those in the 30% tax slab. If the interest exceeds ₹50,000, a 10% TDS will be deducted, but senior citizens receive tax-free interest up to ₹50,000 under Section 80TTB. Because of this, SCSS offers good post-tax returns. Furthermore, compared to schemes like PPF or NSC, it offers better liquidity, meaning funds can be accessed quickly if needed.
The Senior Citizen Savings Scheme (SCSS) is open to those aged 60 and above. Those between 55 and 60 years of age can also invest if they are on VRS or superannuation, but full benefits are available only after reaching 60 years of age. You can open an account individually or jointly with your spouse, but NRIs are not eligible. Getting started with this scheme is easy. Visit your nearest post office or bank and fill out the SCSS form (the form can also be downloaded online from nsiindia.gov.in). Submit KYC documents such as Aadhaar, PAN, photo, and proof of investment. Payment can be made by check or online transfer, and the account is activated within 7 to 15 days.
