Securing Hannav Ledger...
Securing Hannav Ledger...
Calculate your quarterly interest payouts, total interest earned, and maturity proceeds under the government-backed Senior Citizen Savings Scheme (SCSS).
Enter variables to compute real-time projections
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Quarterly Interest = Deposit Amount × (r / 100) / 4SCSS payouts are distributed quarterly on the first day of April, July, October, and January. Interest is simple interest and is not compounded.
The Senior Citizen Savings Scheme (SCSS) is a government-backed retirement benefits program. Eligibility criteria: (1) Individuals aged 60 years or above on the date of opening the account. (2) Retirees under Voluntary Retirement Scheme (VRS), Special VRS, or superannuation in the age bracket of 55 to 60 years, provided the account is opened within 1 month of receiving retirement benefits. (3) Retired defense personnel aged 50 years or above. Joint accounts are permitted only with a spouse.
Deposits: The minimum deposit required to open an SCSS account is ₹1,000. Deposits must be in multiples of ₹1,000. The maximum aggregate investment limit allowed across all SCSS accounts for an individual is capped at ₹30 Lakhs (increased from ₹15 Lakhs in Union Budget 2023). Deposits can only be made as a one-time lump sum per account.
While SCSS has a default lock-in period of 5 years, premature closure is permitted with penalty charges: (a) Closure before 1 year: No interest is payable; any interest already paid is deducted from the principal. (b) Closure after 1 year but before 2 years: A penalty of 1.5% of the deposit amount is deducted. (c) Closure after 2 years: A penalty of 1.0% of the deposit amount is deducted.
1. Principal Deduction: One-time investment up to ₹1.5 Lakhs is eligible for tax benefits under Section 80C. 2. Interest Payouts: Payouts are fully taxable as per your individual tax slab. 3. TDS Deduction: Tax Deducted at Source (TDS) is deducted at 10% (or 20% without PAN) if total SCSS interest income across all post offices/banks exceeds ₹50,000 in a financial year. Senior citizens can submit Form 15H to avoid TDS if their total taxable income is below the exemption threshold.
Example 1: Deposit Amount = ₹15,000,000, Interest Rate = 8.2% p.a., Tenure = 5 Years. Quarterly Income = ₹30,750. Total Interest = ₹6,15,000. Maturity Value = ₹21,15,000. | Example 2: Deposit Amount = ₹30,000,000 (maximum limit), Rate = 8.2% p.a., Tenure = 5 Years. Quarterly Income = ₹61,500. Total Interest = ₹12,30,000. Maturity Value = ₹42,30,000. | Example 3: Deposit Amount = ₹5,00,000, Rate = 8.2% p.a., Tenure = 5 Years. Quarterly Income = ₹10,250. Total Interest = ₹2,05,000. Maturity Value = ₹7,05,000.