There is an important update for the people who come under the category of senior citizens . People falling in the category of senior citizens will now be able to invest more in the post office scheme, Senior Citizen Savings Scheme (SCSS).
In fact, Finance Minister Nirmala Sitaran, while presenting the budget for the year 2023, had said that from April 1, 2023, senior citizens can invest up to Rs 30 lakh in the Senior Citizens Savings Scheme (SCSS) . Earlier, the maximum limit of investment in this scheme was Rs 15 lakh. An official announcement to increase the deposit limit of SCSS can be made after the Finance Bill is passed.
What is SCSS scheme of post office
Senior citizens of the age of 60 years or above can take advantage of this post office scheme. The biggest benefit of this scheme is that in this senior citizens get the benefit of tax deduction along with a regular income. The government is running this scheme and senior citizens also get retirement benefits in it. SCSS account can be opened jointly with spouse only.
How much interest is received
The SCSS scheme of the post office offers interest at the rate of 8 per cent on a quarterly basis. Senior citizens can claim a tax deduction of up to Rs 1.5 lakh for investing in SCSS under Section 80C of the Income Tax Act, 1961. However, this tax benefit is within the overall annual limit of Rs 1.5 lakh that is prescribed for all investments under Section 80C of the Income Tax Act. Also, let us also tell you that the benefit of Section 80C is available only in the financial year in which SCSS is taken. No additional benefit under section 80C will be available for extension of existing account after five years.
