NUMBER OF THE WEEK
Rs 1 trillion: Deposits in Senior Citizens Savings Scheme (SCSS) during first half of fiscal year
Collections under the Senior Citizens Savings Scheme (SCSS) have surged after the government’s decision in the Budget to double the limit on the amount that can be deposited per individual. Collections have surpassed a staggering Rs 1 trillion during the first half of Financial Year 2023-24 (FY24). This momentum is noteworthy compared to the Rs 40,000 crore collected during the same period in FY23.
The FY24 Budget raised the deposit limit for SCSS to Rs 30 lakh from the earlier Rs 15 lakh. The interest rate offered on the scheme is an attractive 8.2 per cent. Interest is payable quarterly. The scheme has a duration of five years. Upon maturity, there’s an option to extend it for another three years.
Any individual aged 60 or above can invest in this scheme. Retired civilian employees aged between 55 and 60 and retired defence employees aged between 50 and 60 can also invest, provided they do so within a month of receiving their retirement benefits.
The minimum deposit amount starts at Rs 1,000 and can be increased in multiples of Rs 1,000.
Investments under SCSS qualify for deduction under Section 80C of the Income-Tax Act.
Once total interest across all SCSS accounts held by an individual exceeds Rs 50,000 in a fiscal year, it becomes taxable.