Tax Saving Scheme for Senior Citizens in India
Retirement is the end of the income period & after this period everyone wants to make the best use of his or her retirement amount and minimize tax liability. Thus, Senior Citizens Saving Schemes (SCSS) is a very good option for those retired persons & senior citizens.
About Senior Citizens Saving Schemes (SCSS):
This Scheme is designed by the Government of India for the Senior Citizens ie, people above the age of 60 years. Through this scheme the Senior citizens can enjoy Tax benefits, can get secured handsome returns & other features that are usually associated with any other Government sponsored Investment Schemes. A person can invest up to Rs.15 Lakhs in a Senior Citizens Saving Schemes (SCSS) account.
Who can invest in Senior Citizens Saving Schemes (SCSS):
- Senior citizens aged 60 years & above
- Retired defense persons with minimum age of 50 years
- The persons who have attained Voluntary Retirement or Superannuation in the age between 55-60 years
ALSO READ: Top 10 Tax Saving Investments in India
Benefits of Investing in Senior Citizens Saving Schemes (SCSS):
Safe & Secure: This is an Indian Government designed scheme & so it is considered as safe & secure Investment schemes like any other government sponsored schemes
Tax Saving Benefits: Under this scheme tax benefits upto Rs.1.5 lakh can be claimed under Section 80C of the Income Tax Act,1961
Simple processing: The process to open this scheme is very easy. It can be opened in a Post Office or any designated bank.
Handsome Returns: At present SCSS offers 7.4% return which is the highest among all Government sponsored Schemes.
Nomination Facility: Under SCSS nomination facility is also available at the time of opening the account
Flexibility: The usual time period of Investment in this scheme is 5 years but it can be further extended up to 3 years after the maturity of this scheme.
Documents required for Opening a Citizens Saving Schemes (SCSS) Account:
- Form A is required to open an SCSS Account
- Pan Card is Must
- Identity Proof
- Address Proof
- Age Proof Certificate
- 2 Passport Photograph