Eligibility for senior citizens savings scheme

All Indian residents are eligible to participate in the Senior Citizens Savings Scheme. Investors must nevertheless fulfil extra requirements. 12a registration is beneficial for non government organizations registered under any act.

(1) This plan is only open to residents 60 years of age and older.

(2) People under the age of 60 who are 55 years old may also invest in this programme. The VRS and superannuation requirements, however, required that they be retired. Additionally, individuals have one month from the day they started receiving retirement benefits to create an SCSS account.

(3) Retired military people are eligible for this programme regardless of their age. However, they must also adhere to other requirements.

(4) Persons of Indian origin (PIO) and NRIs are not permitted to make investments in the Senior Citizens Savings Scheme.

(5) In accordance with these regulations, members of Hindu Undivided Families (HUF) are also unable to contribute to the Senior Citizens Savings Scheme.

Know more at 12a.

SCSS taxes

For older residents, one of the safest investing alternatives is the Post Office Senior Citizen Saving Scheme. The system gives extremely strong security since the government supports it. It also offers favourable returns and tax advantages. Tax deductions are available for investments made in SCSS accounts. Section 80C of the Income Tax Act allows for a maximum claim of INR 1,50,000. To qualify for a deduction while submitting income tax returns, the investor might present investment documentation.

However, tax exemptions are only usable under the current tax system. In the event that the investor decides to adhere to the new tax policy proposed in the Union Budget 2020. No provision is made for a tax deduction.

The SCSS account's interest earnings are taxable at the investor's applicable income tax rate. The income from interest is liable to TDS if it exceeds INR 50,000 in a calendar year.

Comparison of Investment Options with SCSS

For retirement-related investments, the Senior Citizens Savings Scheme is a secure choice. For its investors, SCSS provides security and dependable income. In comparison to the majority of other government programmes, SCSS has the shortest lock-in period of 5 years. It also makes a great tax-saving strategy.

The matter on benefits of section 80g are here.