Anisha Kumari | Jul 11, 2024 |
Saving Schemes: Current Senior Citizens Savings Scheme Interest Rates for July-September Quarter
The Senior Citizens Savings Scheme (SCSS) is a popular investment option for elderly individuals in India. It offers them a safe way to earn regular interest on their savings. For the quarter of July to September 2024, the SCSS interest rate has been updated. Here is everything you need to know about this scheme.
Senior citizens aged 60 years and above can invest in SCSS. However, individuals who have opted for voluntary retirement or superannuation at the age of 55 years or above but below 60 years can also invest in this scheme. Additionally, retired defence personnel aged 50 years and above can take advantage of SCSS benefits.
For the July to September 2024 quarter, SCSS offers an interest rate of 8.2% per annum. This interest rate is reviewed and decided by the government every quarter. Ensuring that it remains competitive. It is also attractive for senior citizens.
Investing in SCSS requires a minimum deposit of Rs.1000. The maximum limit for investment in this scheme is Rs.30 lakh. This cap ensures senior citizens can invest substantial amounts and can earn significant interest. This provides them with a stable income source.
The interest earned from SCSS is fully taxable. It falls under the category of ‘Income from Other Sources’. It is subject to tax as per the applicable tax slab of the individual. However, the scheme is eligible for deduction under Section 80C of the Income Tax Act. This allows for tax-saving benefits up to Rs.1.5 lakh.
While SCSS has a tenure of 5 years, premature withdrawals are allowed along with penalties. According to the new regulations, if the account is closed before the investment’s one-year term finishes, one percent of the deposit will be deducted. Prior regulations indicated that interest on the account’s deposit should be deducted from the deposit, and the account holder would get the entire amount if the account was closed before a year.
Senior Citizens Savings Scheme is a beneficial investment tool. Elderly individuals looking for a safe and regular source of income find it useful. With a current interest rate of 8.2%. This rate is effective for the July-September quarter. It remains an attractive option despite the conditions. Understanding eligibility criteria is important. Also, deposit limits taxation rules and conditions for premature withdrawal. This knowledge can help senior citizens make informed decisions about their investments.
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