Senior Citizen Savings Scheme:
The maximum investment limit for the Senior Citizen Savings Scheme (SCSS) has been increased from Rs 15 lakh to Rs 30 lakh in Budget 2023.
- Senior Citizen Savings Scheme was launched with the main aim of providing senior citizens in India a regular income after they attain the age of 60 years old.
- Indian citizens above the age of 60 years.
- Retirees in the age bracket of 55-60 years who have opted for Voluntary Retirement Scheme (VRS) or Superannuation.
- Retired defence personnel above 50 years and below 60 years of age.
- It has a maturity period of five years. But, a depositor can extend one’s maturity period for another three years.
- Individuals are allowed to operate more than one account by themselves or open a joint account with their spouse.
- Eligible investors can make a lump sum deposit
- Minimum Deposit– Rs. 1,000 (and in multiples thereof)
- Maximum Deposit– Rs. 15 Lakh or the amount received on retirement, whichever is lower(Increased to Rs 30 lakh in Budget 2023).
- Under SCSS, the interest amount is paid to the accountholders quarterly.
- After one year of opening the account, premature withdrawal is allowed.
- Deposits in SCSS qualify for deduction u/s 80-C of Income Tax Act.