Introduction:
SCSS, introduced in 2004, ensures financial security for senior citizens post-retirement with attractive interest rates and tax benefits.
Eligibility:
Indian residents aged 60+.
Those aged 55-60 who took Voluntary Retirement.
Retired Defence personnel aged 50+ (excluding Civilian Defence Employees).
Deposit Limits:
Minimum: INR 1,000
Maximum: INR 30,00,000
Deposits above INR 1 lakh via cheque/demand draft.
Maturity and Withdrawals:
5-year term, extendable by 3 years.
Premature withdrawal penalties apply.
Interest Rates:
8.2% per annum (Jan-Mar 2024).
Compounded quarterly.
Tax Benefits:
Deduction up to INR 1.5 lakhs under Section 80C (old tax regime).
Interest taxable; TDS if interest exceeds INR 50,000 annually.
Accessibility:
Open accounts at post offices or banks with necessary documents (ID, address, age proof, photos).
Banks Offering SCSS:
Public: SBI, PNB, Canara Bank, etc.
Private: IDBI, ICICI.