New Delhi: Senior Citizens Savings Scheme (SCSS) offered by the Government of India is one of the major savings schemes that attract citizens above 60 years of age. SCSS quarter ending was offering an attractive interest of 7.4% as on 31st March 2022. SCSS account can be opened with a minimum deposit of Rs.1,000. This is for a maximum deposit of Rs 15 lakh. In Senior Citizen Savings Scheme, interest is paid on 31st March, 30th June, 30th September and 31st December every year.
SCSS investors can also claim tax benefits under Section 80C of the Income Tax Act, 1961. However, recently, the government faced some problems in pre-closure of Senior Citizens Savings Scheme accounts by the operating agencies.
The Finance Ministry has now come up with a clarification regarding pre-closure of SCSC. The Finance Ministry said, “In the operation of Senior Citizen Savings Scheme (SCSS), in certain cases of death of the account holder, it has been observed that the operating agencies may treat the SCSS account as ‘premature closure'”. have been.’ The Finance Ministry has issued a clarification to this citing Rule 7(2) of SCSS.
“In cases where the SCSS account holder dies and the account is being closed at the request of the legal heir, the rate of interest applicable to the SCSS scheme will be paid till the date of death of the account holder,” the ministry said. Thereafter, the interest rate applicable on the Post Office Savings Account shall be paid from the date of death of the account holder till the date of last closure of the account.’ The ministry further said that the premature closure clause does not get triggered due to the death of the SCSS account holder.
