Advantages And Disadvantages Of Senior Citizen Savings Scheme + + + + + + + + +
Senior Citizen Savings Scheme (SCSS) provides a government-backed mode of investment to elderly people.
Investors can gain tax benefits under section 80C of Income Tax Act. Investors can get up to Rs 1.5 lakh deduction u/s 80C.
Since the SCSS is backed by the government, it is safe to invest in. There is less chance of default or loss in the SCSS. People can deposit up to Rs 30 lakh in the SCSS.
Investors can withdraw their money after one year from the opening of the account. No interest will be given and the principal amount will be returned if account is closed within
In case the investor shifts to another place, they can easily get the SCSS transferred to the bank/post office branch closest to them.
The Senior Citizen Savings Scheme pays interest every quarter. If the interest is not claimed by the account holder, no additional money will be earned on it.
Tax Deducted at Source (TDS) will be cut from the interest accrued in a SCSS account if the total interest exceeds Rs 50,000 in a financial year.
The interest rate under the scheme is fixed, meaning that individuals who opened the account earlier, may be at a disadvantage. They can open a new account to avail a better rate
Only individuals over the age of 60 can avail the benefits. Defence employees between 50 and 60 years or civilian employees from 55 to 60 years can invest in scheme, provided the
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