Senior
Citizens Savings Scheme (SCSS)
Post Office Senior
Citizens Savings Scheme has been notified with effect from August 2, 2004. The
Scheme offers a new avenue of investment and return for Senior Citizen. The
investment under this scheme qualify for the benefit of Section 80C of the
Income Tax Act, 1961 from 1.4.2007.
Salient features of
POSCS (Post Office Senior Citizens Savings) Scheme
Eligibility
- Any citizen, who has attained age of 60 years or above on the date of opening of the account.
- Who has attained the age 55 years or more but less than 60 years and has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within one month from the date of retirement.
- No age limit for the retired personnel of Defence services provided they fulfill other specified conditions.
- A depositor may open the account in his individual capacity or jointly with spouse.
- The accounts may be opened singly or jointly with spouse.
- More than one account can be opened provided the total amount deposit does not exceed the prescribed limit.
- Eligible applicants can open account by submitting application on Form A.
- Non-residents and HUFs are ineligible to open the account under the scheme.
- In case of cheque, the date of realization of cheque in Govt. account shall be date of opening of account.
Minimum
amount
Rs.
1,000/-
Maximum
amount
Rs.
15,00,000/- (Rs. fifteen lakhs). In case of retiring employees the amount cannot
exceed the amount of retirement benefits.
Maturity
period
Five
years
The depositor may
extend the account for a further period of 3 years by submitting application
on Form
B
Nomination
facility
Available
A depositor may
change nomination by submitting application on Form
C.
Interest
|
Period
|
Interest
Rate
|
|
Upto
31.03.2012
|
9.00%
per annum
|
|
01.04.2012
to 31.03.2013
|
9.30%
per annum
|
|
01.04.2013
to 31.03.2014
|
9.20%
per annum
|
|
01.04.2015
to 31.03.2016
|
9.30%
per annum
|
|
01.04.2016
to 30.09.2016
|
8.60%
per annum
|
|
01.10.2016
onwards
|
8.50%
per annum
|
Interest is payable
quarterly on 31st March, 30th June, 30th September and 31st
December.
If the interest
payable every quarter is not claimed by a depositor, such interest do not earn
additional interest.
Mode of payment of interest
- In case of SCSS accounts, quarterly interest shall be payable on 1st working day of April, July, October and January. It will be applicable at all CBS Post Offices.
Premature
withdrawal
In
case the account is closed after expiry of one year but before expiry of two
years from the date of opening of the account, an amount equal to 1.5% of the
deposit shall be deducted and the balance paid to the depositor.
Premature closure
is allowed after one year on deduction of 1.5% interest & after 2 years on
deduction of 1% interest.
Application for
premature closure of the account may be submitted on Form
E.
No deduction shall
be made in case of premature closure of an account at any time due to death of a
depositor. Application for premature closure by spouse (Joint
Holder)/nominee(s)/legal heirs of the account may be submitted on Form
F.
Tax
benefits
Investment
under this scheme qualifies for the benefit of Section 80C of the Income Tax
Act, 1961 from 1.4.2007.
Interest
Taxability
Taxable
- Other features
- The Account can be transferred from one post office to another
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