{"id":29007,"date":"2020-02-18T19:18:33","date_gmt":"2020-02-18T13:48:33","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=29007"},"modified":"2020-02-24T10:29:22","modified_gmt":"2020-02-24T04:59:22","slug":"senior-citizen-saving-scheme-a-complete-overview","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/senior-citizen-saving-scheme-a-complete-overview\/","title":{"rendered":"Senior Citizen Saving Scheme: A Complete Overview"},"content":{"rendered":"<p class=\"has-drop-cap\">Senior citizens are the essence of any country and to protect their needs, many schemes are launched by the Government. The Central Government has introduced many retirement and pension schemes for the benefit of senior citizens. One such scheme for the senior citizens of India is the <strong>Senior Citizen Savings Scheme<\/strong> (SCSS). This saving scheme offers a regular stream of income with tax-saving benefits. Senior citizen savings scheme is an apt choice of investment for senior citizens over 60 years of age.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is the Senior Citizens Savings Scheme?<\/h2>\n\n\n\n<p>The\nSenior Citizen savings scheme or SCSS is a savings scheme sponsored by the\nCentral Government to Indian residents over 60 years of age. This scheme was\nfirst introduced in the year 2004. The fundamental objective of the scheme is\nto provide financial support to retirees ensuring a regular flow of income.\nInterest is guaranteed in this investment and received quarterly.<\/p>\n\n\n\n<p>The\nSenior citizen savings scheme deposit matures after five years from the date of\nopening of account but can be extended once by an additional three years. The\ninterest rate for senior citizens savings scheme has been set at 8.6%. Amongst\nall the saving schemes in India, this scheme provides the highest rate of\ninterest. Public or private sector banks and post offices offer this scheme.\nSince the central Government backs this scheme, the terms and conditions in the\nsenior citizen savings scheme are the same, regardless of the post office or\nbank where investment is made.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Eligibility under the Senior Citizen Savings Scheme<\/h2>\n\n\n\n<p>To be eligible for the<strong>&nbsp;senior citizen\nSaving Scheme,<\/strong>&nbsp;an individual must fulfill the following criteria:\n<\/p>\n\n\n\n<ul><li>The senior citizen must have attained the age of 60 years or above on the date of opening of the account.<\/li><li>In case of voluntary retirement scheme (VRS) or Superannuation, the beneficiary must be in the age bracket of 55 to 60 years. Here the investment must be made within a month of receiving the retirement benefits. <\/li><li>Retired defence personnel excluding the civilian defence employees with a minimum age of 50 years.<\/li><li>Members of Hindu Undivided Family and NRIs are not eligible to invest in this scheme.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Tax\nBenefit under the Senior Citizen Savings Schemes<\/strong><strong><\/strong><\/h2>\n\n\n\n<ul><li>The Investments under the Senior citizen savings scheme are eligible for a tax deduction while <a href=\"https:\/\/enterslice.com\/income-tax-return-filing\">filing of Income-tax Return<\/a> under section 80C of the Income Tax Act, 1961.<\/li><li>As per the current rules, if the interest in earnings from the senior citizens savings scheme is more than Rs. Fifty thousand in one fiscal year, an individual is liable to pay TDS or Tax Deducted at source for the interest earned.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Investment Amount for Senior Citizen Savings Scheme<\/h2>\n\n\n\n<ul><li>The maximum amount an individual can invest either individually or jointly in the Senior citizen savings scheme account must be in multiples of Rs.1000.<\/li><li>The invested amount in this scheme cannot exceed the money that has been received on retirement.<\/li><li>An individual can invest either Rs. 15 lakhs or the amount received as a retirement benefit, whichever is lower.<\/li><li>This account is opened by cash for an amount below Rs. 1 lakh and by cheque for an amount more than Rs. 1 lakh.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How to Fill Senior Citizen Savings Scheme Application Form?<\/h2>\n\n\n\n<p><strong>The Senior citizen savings application form is available in both online and offline mode. The participating public and private sector banks have the option of Senior citizen savings scheme form download from their official websites. You can download the form from the official website of India post office:<\/strong><\/p>\n\n\n<a href=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/ApplicationFormForOpeningSCSS.pdf\" class=\"pdfemb-viewer\" style=\"width: 767px; \" data-width=\"767\" data-height=\"max\" data-toolbar=\"bottom\" data-toolbar-fixed=\"on\">ApplicationFormForOpeningSCSS<br><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n\n\n\n<p><strong>Alternatively, the form can be filled at designated\nbranches of the participating banks in India.<\/strong><strong><\/strong><\/p>\n\n\n\n<p>The\nsenior citizen savings scheme account cannot be opened from the online route. Hence\nafter downloading the form, an individual must submit the printed copy of the\nform along with the supporting documents. <\/p>\n\n\n\n<p>An\nindividual can open this account in any of the post offices or authorized banks\nacross India with the following documents:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"920\" height=\"531\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Picture1-2.png\" alt=\"authorized banks across India with the following documents\" class=\"wp-image-29011\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Picture1-2.png 920w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Picture1-2-300x173.png 300w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Picture1-2-768x443.png 768w\" sizes=\"(max-width: 920px) 100vw, 920px\"\/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Renewal\nUnder the Senior Citizen Savings Scheme<\/strong><strong><\/strong><\/h2>\n\n\n\n<ul><li>If the depositor wishes to extend the scheme, then they can extend it for three more years.<\/li><li>But the depositor has to wait until the maturity of five years to get the extension.<\/li><li>To receive the extension, an application should be made in Form B within one year after the date of the maturity period.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Premature Withdrawal of Senior Citizen Savings Scheme Account Deposit<\/h2>\n\n\n\n<p>Early withdrawal under the senior citizen savings\nscheme is permitted, but there are penalties applicable in such cases. The\ncalculation about penalties is based on the time elapsed between the opening of\nthe account and its withdrawal. The penalties on premature withdrawal are as\nfollows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"612\" height=\"314\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Picture2-2.png\" alt=\"Premature Withdrawal of Senior Citizen Savings Scheme\" class=\"wp-image-29012\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Picture2-2.png 612w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Picture2-2-300x154.png 300w\" sizes=\"(max-width: 612px) 100vw, 612px\"\/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Nomination\nUnder Senior Citizen Savings Scheme<\/strong><strong><\/strong><\/h2>\n\n\n\n<ul><li><strong>The nominees can be more than one person.<\/strong><\/li><li><strong>The applicant must present the nominee at the time of opening of the account or at any time after the opening of the account.<\/strong><\/li><li><strong>Before the closure of the depositor&rsquo;s account, the nominee must be introduced.<\/strong><\/li><li><strong>An application to appoint a nominee must be made in Form C accompanied by the passbook to the Branch.<\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Closing\nof Account Under the Senior Citizen Saving Scheme<\/strong><strong><\/strong><\/h2>\n\n\n\n<p><strong><em>There are three ways to close a senior citizen savings scheme<\/em><\/strong>:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"880\" height=\"473\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Picture3-1.png\" alt=\"three ways to close a senior citizen savings scheme\" class=\"wp-image-29013\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Picture3-1.png 880w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Picture3-1-300x161.png 300w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Picture3-1-768x413.png 768w\" sizes=\"(max-width: 880px) 100vw, 880px\"\/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Closing of account on maturity<\/strong><strong><\/strong><\/h3>\n\n\n\n<p>The concerned deposit office pays the deposit made during the opening of account after the expiry of five years from the date of account opening.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Closing of the account by default<\/strong><strong><\/strong><\/h3>\n\n\n\n<p>If the depositor does not\ntouch the account that is neither the account is closed nor it is extended then\nthe account is closed by default and the payment is made from time to time till\nthe end.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Closing of the account by the death of the depositor<\/strong><strong><\/strong><\/h3>\n\n\n\n<p>If\nbefore maturity the applicant dies before maturity of the account then the\naccount shall be closed and the deposit will be refunded in Form F. The deposit\nis refunded along with the interest amount to the nominee or legal heirs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Benefits of investing in Senior Citizen Savings Scheme<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"900\" height=\"543\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Picture4-1.png\" alt=\"Benefits of Senior Citizen Savings Scheme\" class=\"wp-image-29014\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Picture4-1.png 900w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Picture4-1-300x181.png 300w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Picture4-1-768x463.png 768w\" sizes=\"(max-width: 900px) 100vw, 900px\"\/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Safe and Reliable<\/h3>\n\n\n\n<p>As this scheme is backed by the Indian Government, it is considered to be one of the safest and most reliable investment options.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Simple and Easy process<\/h3>\n\n\n\n<p>The process to open a Senior Citizens Savings Scheme account is simple. The account can be opened at any authorized bank or any post office in India. It is transferable across India.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><br> Good returns<\/h3>\n\n\n\n<p>The<strong> return rate at 8.6 %<\/strong> is excellent compared to a savings or Fixed Deposit account.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><br> Nomination<\/h3>\n\n\n\n<p>The Nomination\nfacility is available during the time of opening of the account through\napplying part of Form C. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Tax benefits<\/h3>\n\n\n\n<p>Tax deduction up to the amount Rs 1.5 lakh can be claimed under Section 80C of the <a href=\"https:\/\/www.incometaxindiaefiling.gov.in\/home\">Indian Income Tax Act, 1961<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><br> Flexible<\/h3>\n\n\n\n<p>The tenure of this scheme is compliant with an average time of\n5 years which can be extended up to 3 additional years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Wrapping Up<\/h2>\n\n\n\n<p>Investing\nin Senior citizen savings scheme is a good option for senior citizens above the\nage of 60 years to make money. This is a beneficial and long-term saving option\nwhich offers security and entails features that are usually associated with\nGovernment-backed savings or investment schemes. The scheme is available\nthrough different certified banks and post offices across India. You can\ncontact Enterslice to know more about the tax-saving options and investment schemes\nto get a better return from income tax perspective.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Senior citizens are the essence of any country and to protect their needs, many schemes are launched by the Government. The Central Government has introduced many retirement and pension schemes for the benefit of senior citizens. One such scheme for the senior citizens of India is the Senior Citizen Savings Scheme (SCSS). This saving scheme [&hellip;]<\/p>\n","protected":false},"author":27,"featured_media":29015,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"acf":{"service_id":"215"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Senior Citizen Saving Scheme: A Complete Overview<\/title>\n<meta name=\"description\" content=\"To be eligible for the senior citizen Saving Scheme, an individual must fulfill the criteria given by government. 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