Senior citizens can get tax exemption with Senior Citizen Saving Scheme : Know important details here
Senior Citizen Savings Scheme: Savings and investment are considered the safest through post offices, so people invest through it. Many of its policies are synonymous with benefits, one of which is excellent for the elderly. There is a similar scheme in the post office which is only for senior citizens - Senior Citizen Saving Scheme (Senior Citizens Savings Scheme Account) of the Post Office (Post Office SCSS). This scheme is best in terms of safety and return. Now, let us see the benefits of this scheme.
Who can invest?
You should be at minimum 60 years of age to open an account in the Senior Citizens Savings Scheme (SCSS). In addition, those who have taken VRS can also open an account in the scheme. It also offers better returns and can also avail income tax exemptions. Source: Reuters
Better returns
If you want to get a return of up to Rs 14 lakh by investing in SCSS, you will have to invest Rs 10 lakh. In this case, the interest rate (Interest Rate) will be 7.4 per cent (compounding) per annum. 5 years later, the total amount for investors on maturity will be Rs. 14,28,964. Here you will gain Rs 4,28,964 as interest. Source: Reuters
Income Tax exemption
The important thing is that if your interest amount exceeds Rs. 10,000 per annum under SCSS, your TDS starts cutting. However, investment in the scheme has been exempted under section 80C of the Income Tax Act, which is also an option to save tax. .Source: Reuters
Minimum investment
You can also start investing in this scheme from Rs. 1000. Also you can't keep a maximum of More than Rs. 15 lakhs in this account. If the amount of opening your account is less than Rs. 1 lakh, you can also open an account by giving cash. To open an account for more than Rs 1 lakh, you have to give a cheque. Source: Reuters
When will the investment be amateur?
The maturity of your deposit capital in Post Office SCSS is completed in 5 years. However you can extend it for another three years. You need to apply for this to the post office. You can close the account before maturity, but the post office deducts 1.5 percent of the deposit only when you close the account for 1 year after opening the account. If you close after 2 years, 1 percent of the deposit is deducted. Source: Reuters