SCSS interest rate: Latest Senior Citizens Savings Scheme interest rate for July- September quarter
Synopsis
The Senior Citizen Saving Scheme (SCSS) is an investment scheme developed and maintained by the Indian government to help senior citizens live financially secure lives after retirement. The interest rate on this savings scheme is set and revised by the government every quarter.
The Senior Citizen Saving Scheme (SCSS) is an investment scheme developed and maintained by the Indian government to help senior citizens live financially secure lives after retirement. The interest rate on this savings scheme is set and revised by the government every quarter.
Who can invest in SCSS
Senior citizens aged 60 years and above are eligible for this scheme. The plan also applies to retired persons over the age of 55 who are participating in a voluntary or special voluntary scheme, as well as retired personnel from the defence services (excluding civil defence staff).Latest Sukanya Samriddhi Yojana interest rate: What is the SSY interest rate for July- September 2024 quarter?
What is SCSS latest interest rate
SCSS investors can earn interest at the rate of 8.2% on their deposit for the July to September quarter. Interest will be paid on quarterly basis and applicable from the date of deposit to 31st March/30th June/30th September/31st December, according to the IndiaPost website.Minimum and maximum deposit limit
The account shall be opened with a minimum deposit of Rs. 1,000 or any sum in multiples of Rs. 1,000 not exceeding Rs. 30,00,000. In case any excess deposit made in SCSS account, excess amount will be refunded immediately to the depositor and only PO Savings Account Interest rate will be applicable from the date of excess deposit to the date of refund.
The tenure of the deposit is 5 years and can be further extended by 3 years. The account holder may keep extending the account for an unlimited number of blocks, each lasting three years. Furthermore, for each extension, the application must be submitted. The extension could only be granted once in the past. Regardless of when the application was received, the extension shall be taken into consideration as of the date of maturity or the conclusion of each three-year block term.
SCSS taxation
Investments in this scheme are eligible for the benefit of Section 80C of the Income Tax Act, 1961. Interest is taxable if the total interest paid in all SCSS accounts exceeds Rs.50,000/- in a fiscal year, and TDS at the required rate is deducted. No TDS will be deducted if form 15 G/15H is submitted and the accrued interest does not exceed the specified maximum.Deduction on premature withdrawal
New regulations on premature scheme withdrawals have been implemented by the government. According to the new regulations, if the account is closed before the investment's one-year term expires, one percent of the deposit would be withheld. Prior regulations stated that interest on the account's deposit should be recouped from the deposit and the account holder would receive the whole amount if the account was closed before a year had passed.
The account shall be opened with a minimum deposit of Rs. 1,000 or any sum in multiples of Rs. 1,000 not exceeding Rs. 30,00,000. In case any excess deposit made in SCSS account, excess amount will be refunded immediately to the depositor and only PO Savings Account Interest rate will be applicable from the date of excess deposit to the date of refund.
The tenure of the deposit is 5 years and can be further extended by 3 years. The account holder may keep extending the account for an unlimited number of blocks, each lasting three years. Furthermore, for each extension, the application must be submitted. The extension could only be granted once in the past. Regardless of when the application was received, the extension shall be taken into consideration as of the date of maturity or the conclusion of each three-year block term.
SCSS taxation
Investments in this scheme are eligible for the benefit of Section 80C of the Income Tax Act, 1961. Interest is taxable if the total interest paid in all SCSS accounts exceeds Rs.50,000/- in a fiscal year, and TDS at the required rate is deducted. No TDS will be deducted if form 15 G/15H is submitted and the accrued interest does not exceed the specified maximum.Deduction on premature withdrawal
New regulations on premature scheme withdrawals have been implemented by the government. According to the new regulations, if the account is closed before the investment's one-year term expires, one percent of the deposit would be withheld. Prior regulations stated that interest on the account's deposit should be recouped from the deposit and the account holder would receive the whole amount if the account was closed before a year had passed.
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