Seniors Savings Scheme: In the 2023 budget, the maximum deposit limit has been increased to 30 lakhs. (Representative image)

Senior Savings Scheme: A contributor can open an account individually or jointly with a spouse.

To empower older people, the 2023-2024 Union Budget announced that the maximum deposit limit for the pension savings scheme will be increased from the current 15 lakhs to 30 lakhs.

In addition, the maximum deposit limit for the monthly income account scheme has been increased from 4.5 lakh to 9 lakh for a single account and from 9 lakh to 15 lakh for a joint account.

What is the Senior Savings Program (SCSS)?

To open an account, the minimum deposit must be Rs 1,000 multiples of this, with a maximum deposit of 30 lakhs (after the 2023 budget is passed).

There must be only one deposit in the account in an amount that is a multiple of Rs 1,000 / – maximum not exceeding Rs 30 lakh. Multiple withdrawals from the account are not allowed.

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Who can open a Retirement Savings account?

A person who is 60 years of age or older on the date the account is opened, or a person who is 55 years of age or older but less than 60 years of age and retired under a Retirement Plan, VRS or Special VRS, may open an account.

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Retirees of the Defense Service (with the exception of civil defense employees) may also open an account upon reaching the age of fifty, subject to certain other conditions.

The depositor can open an account individually or jointly with a spouse. However, the entire amount of the deposit in the joint account applies only to the first account holder.

Senior Savings Program Interest Rate

Interest is payable from the date of deposit until March 31/June 30/September 30/December 31 on the 1st business day of April/July/October/January, as the case may be, in the first case and thereafter interest is payable. on the 1st business day of April/July/October/January.

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For the quarter ended March 31, 2023, the interest rate on the Senior Savings Plan is 8%.

Interest Rate Since Creation – Source: National Thrift Institute.

Interest is taxable if the total interest on all SCSS accounts exceeds Rs 50,000 in a financial year and TDS at the prescribed rate is deducted from the total interest paid. No TDS will be deducted if Form 15 G/15H is submitted and interest accrued does not exceed the limit.

The account can be closed after 5 years from the date of opening the account. The depositor can extend the account for another 3 years.

Early closure is permitted subject to certain conditions. Deposits in SCSS are deductible under section 80-C of the Income Tax Law.

Where to open an account in the pension savings program?

It is possible to open a savings scheme account for the elderly in banks and post offices in India. Investments under this scheme are subject to section 80C of the Income Tax Act of 1961.

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Namit Singh Sengar Namit is Senior Associate Editor of Business Vertical. With over five years of experience, he focuses on personal finance, brands, and economics….Read More

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