Post Office SCSS: Small savings funds plans of the post office have forever been a superior choice for investment. The best thing regarding this is that the deposit is totally protected with ensured returns. These investments are not impacted by market variances. The post office offers an assortment of deposit plans. One of these plans is the Senior Citizen Savings Scheme (SCSS) of the Post Office.
Deposit on 5 lac, 6.85 lac
Assuming you contribute a singular amount of Rs 5 lakh in the Senior Citizens Scheme, then, at the pace of interest of 7.4 percent (building) per annum, the aggregate sum following 5 years for example on maturity will be Rs 6,85,000. Here you are getting the advantage of Rs 1,85,000 as interest. Along these lines, each quarter interest will be Rs 9,250.
SCSS: 7.4% interest per annum, maturity of 5 years
As indicated by the information accessible on the site of the post office, the yearly interest in this plan will be 7.4%. The maturity period in this plan is 5 years. Deposits can be made in multiples of Rs 1000. Additionally, a most extreme investment of Rs 15 lakh can be made in this. It must be put resources into single amount.
Under SCSS, a account can be opened by a 60 individual years old or more.If somebody is 55 years or more however under 60 years of age and has taken VRS, then, he can likewise open a account in SCSS. Yet, the condition is that he needs to open this account inside one month of getting the retirement benefits and the sum kept in it ought not surpass how much retirement benefits.
As per the site, under SCSS, a contributor can hold more than one account either separately or together with his/her life partner. Yet, all together the maximum investment limit can’t surpass 15 lakhs. With a sum under 1 lakh, the account can be opened in cash, yet for more than that, check should be utilized.
SCSS: Nomination facility is accessible
Nomination facility is accessible at the hour of opening and shutting the account in Senior Citizen Savings Schemes. This account can be moved starting with one post office then onto the next. In this account holder can do untimely conclusion. However, the post office will deduct 1.5 percent of the deposit just on shutting the account following 1 year of account opening, while 1% of the deposit will be deducted following 2 years of conclusion.
Can be extended for quite some time after maturity
After the maturity of SCSS, the account can be reached out for an additional three years. For this, the application must be submitted inside one year from the date of maturity. Tax deduction is additionally accessible on deposits in this account. Interest in this plan is excluded under segment 80C of the Income Tax Act.
Pay from interest in SCSS is burdened.If the interest pay of all your SCSS surpasses Rs 50,000 for every annum, then, your TDS begins deducting. The assessment sum is deducted from your advantage. In the event that the interest pay doesn’t surpass as far as possible, then, at that point, you can get alleviation from TDS by submitting Form 15G/15H.
