Senior Citizen Scheme is a better option to protect the regular income as well as money and provides the advantage of tax savings. The scheme is very popular among those people who are over the age of the 60th stage. After retirement, people are looking for an investment option where they can invest their savings. This age people tend to avoid putting your money in equity because it carries the risk of capital loss, which is considered a better option in the senior citizen scheme.
Who can invest in this scheme?
This scheme may invest in all of them people aged 60 years or above that. Not only the people who 55 years to 60 years during the period of voluntary retirement (VRS) can choose to invest in it too. Retired defense personnel, depending on age and other conditions can invest. The expatriates (NRIs), HUF (HUFs) are not entitled to invest in the scheme.
How can the investment be made?
60 years or older people to go to a commercial bank or post office or individual can open a joint account.
How much can the investment be?
None aged either alone or jointly account for 15 lakh senior citizens saving scheme (maximum) to be opened by. The minimum amount is Rs 1000. This amount may not exceed the amount that the older person will retire. According to the website of the department entered into a senior citizen scheme rules account either by cash or less than Rs 1 lakh through cheque can be opened by 1 million or more.
How many accounts can be opened?
The scheme has no limit for account opening. No one can any more accounts opened, but that it is subject to all accounts should not exceed the maximum limit of the total amount invested.
These documents are necessary:
• A completely filled form, which is available at the post office or the bank.
• KYC form
• Applicant’s Photo
• Applicant PAN
• Copy of residence certificate
• Proof of age
• On behalf of the employer in the event of retirement in the context certificate released
Proof of investment:
A senior citizen savings scheme after opening an account in a bank or post office on behalf of a passbook is given, the date of opening the account, account number, name of the depositor, his photo graph, address and deposits went amount is recorded. It also marks the returns on a quarterlybasis.
How much is the interest?
Senior citizen savings scheme on an annual basis at the rate of interest is 8.5 per cent. The finance ministry is also reviewed every quarter. However, the choice of compound interest earned on fixed deposits gets.
How long is the investment?
The investment plan has a maximum period of 5 years. However, the maturity, the term may be extended once for 3 years. Premature withdrawals are allowed from this account. But it can be done only after a period of one year.
Senior Citizen Savings Scheme (SCSS) investment accounts the Income Tax Act, 1961 as provided for in Section 80 C Tax saves. Under Section 80 C of the Income Tax Act, the tax exemption under the scheme to benefit the maximum limit of 1.5 million per year.