A retirement financial savings plan particularly created for senior residents, or these over 60, is named the Senior Residents’ Financial savings Scheme (SCSS). Authorities coverage determines the SCSS’s rate of interest, and it offers account holders a gradual earnings throughout their retirement. SCSS account may be opened by filling the shape and by depositing minimal quantity of Rs 1,000 or any sum in multiples of Rs 1,000.
In line with the PIB launch, consideration is drawn to Rule 7(2) of SCSS, and the next is clarified:
- In circumstances the place the SCSS account holder/s passes away and the account is being closed on request of the nominee/authorized inheritor, the speed of curiosity as relevant on SCSS scheme shall be paid until the date of demise the account holder. Thereafter, the rate of interest relevant on Publish Workplace Financial savings Account shall be paid from the date of demise of the account holder until the date of ultimate closure of the account.
- Untimely closure clause doesn’t set off on account of demise of the SCSS account holder. The untimely closure of the account is relevant solely when the SCSS account holder requests for closure of personal SCSS account earlier than the maturity interval. In such circumstances of untimely closure of the account, a penalty shall be levied as talked about within the rule 6 of the SCSS.
Who’s eligible for funding in SCSS 2004 Scheme
Residents who’re 60 years of age or older might open an account. Between the ages of 55 and 60, those that have chosen the Voluntary Retirement Scheme (VRS) or superannuation might achieve this, whereas retired members of the armed forces might achieve this between the ages of fifty and 60. After acquiring retirement earnings, investments have to be made within the SCSS account inside one month.
Rate of interest on SCSS
In line with the India Publish web site, beneath are essential factors on curiosity fee of the scheme.
(i) Curiosity shall be payable on quarterly foundation and relevant from the date of deposit to thirty first March/thirtieth June/thirtieth September/thirty first December.
(ii) If the curiosity payable each quarter is just not claimed by an account holder, such curiosity shall not earn further curiosity.
(iii) Curiosity may be drawn by way of auto credit score into financial savings account standing at similar publish workplace, or ECS. In case of SCSS account at CBS Publish workplaces, month-to-month curiosity may be credited into financial savings account standing at any CBS Publish Places of work.
(iv) Curiosity is taxable if whole curiosity in all SCSS accounts exceeds Rs.50,000/- in a monetary yr and TDS on the prescribed price shall be deducted from the full curiosity paid. No TDS will likely be deducted if type 15 G/15H is submitted and accrued curiosity is just not above prescribed restrict.