Focus: GS II: Government Policies and Interventions
Why in News?
The maximum investment limit for the Senior Citizen Savings Scheme (SCSS) has been increased from Rs 15 lakh to Rs 30 lakh in Budget 2023.
About Senior Citizen Savings Scheme (SCSS):
- The main aim of the SCSS is to provide senior citizens in India a regular income after they attain the age of 60 years old. The scheme offers eligible individuals the opportunity to make a lump sum deposit with a minimum of Rs. 1,000 and a maximum of Rs. 15 Lakh or the amount received on retirement, whichever is lower.
Eligibility:
- Indian citizens above the age of 60 years
- Retirees in the age bracket of 55-60 years who have opted for Voluntary Retirement Scheme (VRS) or Superannuation
- Retired defence personnel above 50 years and below 60 years of age
Deposit Limits:
- Minimum Deposit – Rs. 1,000 (and in multiples thereof)
- Maximum Deposit – Rs. 15 Lakh or the amount received on retirement, whichever is lower (Increased to Rs 30 lakh in Budget 2023)
- Individuals are allowed to operate more than one account by themselves or open a joint account with their spouse.
Maturity & Interest Payment:
- Maturity period of five years
- Depositor can extend the maturity period for another three years
- Interest amount paid to the account holders quarterly
Other Details:
- Premature withdrawal is allowed after one year of opening the account.
- Deposits in SCSS qualify for deduction u/s 80-C of Income Tax Act.
