Eligibility criteria and account opening rules
- Open to Indian citizens who have attained 60 years of age, or retired civilian employees aged 55 to 60 who invest retirement benefits within one month.
- Retired defense personnel can open an account after attaining 50 years of age under applicable government guidelines.
- Accounts can be operated individually or jointly with a spouse at any computerized post office or authorized commercial bank.
Tenure, interest payout, and investment limits
- Maturity tenure is five years, with an option to extend for additional three-year blocks upon written application.
- Interest rates are reviewed and notified quarterly by the Ministry of Finance, with payments credited directly into savings accounts.
- Deposit ceilings are statutory limits per individual across all SCSS accounts, with minimum deposit requirements starting from nominal amounts.
Tax implications and premature withdrawal
- Deposits qualify for tax deduction under Section 80C of the Income Tax Act up to statutory annual limits.
- Interest income is taxable as per the individual's applicable income slab, with TDS deducted if aggregate annual interest exceeds prescribed thresholds.
- Premature withdrawal is permitted after one year subject to nominal penalty deductions specified in post office rules.
Official source
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Common questions
What is the Senior Citizen Savings Scheme (SCSS) in post offices?
It is a sovereign-backed savings scheme for senior citizens aged 60 and above offering quarterly interest payouts.
What is the tenure of an SCSS account?
The initial tenure is 5 years, which can be extended for an additional 3-year period upon maturity.
How frequently is interest disbursed under SCSS?
Interest is calculated quarterly and disbursed directly into the depositor's linked savings account on fixed calendar dates.
Does SCSS offer tax benefits?
Yes, deposits qualify for tax deduction under Section 80C, though the quarterly interest earned is taxable.
General guidance, not personal advice. For your farm, ask your local Krishi Vigyan Kendra or agriculture officer.
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