New Delhi: The Senior Citizens’ Savings Scheme (SCSS) is one of the most popular government-backed investment options for retirees looking for regular income and safety. With the current interest rate of about 8.2 percent per year, the scheme provides a steady income stream through quarterly interest payments.
To earn roughly Rs 20,000 per month, an investor would typically need to invest close to the maximum permitted amount of Rs 30 lakh in the scheme. At the present interest rate, such an investment can generate around Rs 20,500 in monthly income (calculated from quarterly payouts).
SCSS is available to individuals aged 60 years and above, and in certain cases to retired employees aged 55–60 who meet eligibility conditions. The scheme has a five-year tenure, which can be extended by another three years after maturity.
Apart from regular income, SCSS also offers tax benefits. The amount invested qualifies for a deduction of up to Rs 1.5 lakh under Section 80C, helping investors reduce their taxable income. Additionally, senior citizens can claim up to Rs 50,000 deduction on interest income under Section 80TTB.
However, the interest earned under SCSS is taxable, and TDS may apply if annual interest exceeds the prescribed limit. Investors should factor in these tax implications when calculating net returns.
Overall, SCSS remains a low-risk retirement investment option backed by the Government of India, offering higher returns than many bank fixed deposits and predictable income for senior citizens.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
