Senior Citizens' Savings Scheme (SCSS) Calculator
Use our SCSS Calculator to estimate your returns from the Senior Citizens' Savings Scheme. Learn how the scheme works, its benefits, and more below.
Calculate Your SCSS Returns
What is the Senior Citizens' Savings Scheme (SCSS)?
The Senior Citizens' Savings Scheme (SCSS) is a government-backed savings scheme specifically designed for senior citizens in India. It offers a secure and reliable investment option with attractive interest rates. The scheme has a tenure of 5 years, which can be extended by an additional 3 years upon maturity. Interest is paid out quarterly, making it a suitable choice for retirees seeking a regular income. The SCSS is available through post offices and select banks across India.
How Does the SCSS Calculator Work?
The SCSS Calculator helps you estimate the maturity amount you can earn from your investment in the scheme by considering the following parameters:
- Investment Amount: The lump sum amount invested in the SCSS.
- Annual Interest Rate: The interest rate offered by the scheme on the investment.
- Tenure: The duration for which the investment is held, typically 5 years.
The calculator uses the following method to estimate the maturity amount:
Maturity Amount = Principal Amount + (Principal Amount × Quarterly Interest Rate × Total Quarters)
The interest is calculated quarterly, and the maturity amount includes the principal amount plus the interest earned over the investment period.
Benefits of the Senior Citizens' Savings Scheme (SCSS)
- Secure Investment: The SCSS is a government-backed scheme, ensuring the safety of your investment.
- Attractive Interest Rates: The scheme offers competitive interest rates, providing a reliable source of income for retirees.
- Regular Income: Interest is paid out quarterly, making it an ideal choice for those seeking regular income during retirement.
- Tax Benefits: Investments in SCSS are eligible for tax deduction under Section 80C of the Income Tax Act, up to a limit of ₹1.5 lakh per financial year.
- Flexibility: The scheme offers the option to extend the tenure by 3 years upon maturity, allowing continued investment benefits.
Frequently Asked Questions (FAQ)
1. Who is eligible to invest in the SCSS?
Any individual aged 60 years or above is eligible to invest in the SCSS. Retirees who have opted for voluntary retirement or superannuation can also invest, provided they do so within one month of receiving their retirement benefits.
2. What is the maximum investment limit in the SCSS?
The maximum investment limit in the SCSS is ₹15 lakh per individual. Joint accounts can also be opened, but the investment limit applies to the total investment in the account.
3. Can I prematurely withdraw from the SCSS?
Yes, premature withdrawal is allowed after one year from the date of account opening. However, a penalty of 1.5% of the deposit amount is deducted if withdrawal occurs before the completion of 2 years, and a 1% penalty is deducted if withdrawal occurs after 2 years.
4. Is the interest earned from the SCSS taxable?
Yes, the interest earned from the SCSS is fully taxable. TDS (Tax Deducted at Source) is applicable if the interest earned exceeds ₹50,000 in a financial year. However, you can claim a tax deduction under Section 80C for the initial investment, subject to the limit of ₹1.5 lakh.
5. Can the SCSS account be transferred to another post office or bank?
Yes, the SCSS account can be transferred from one post office or bank to another by submitting a transfer application along with the passbook at the current branch.