Question 1

What is the Senior Citizens Savings Scheme (SCSS)?

Accepted Answer

SCSS is a government savings scheme exclusively for senior citizens (aged 60 and above). It pays a high fixed interest rate on a lump-sum deposit, distributed as a quarterly payout. The initial tenure is 5 years, which can be extended once for a further 3 years (total 8 years). It is one of the best risk-free income options for retirees because of its sovereign guarantee, high rate, and regular payouts.

Question 2

Who is eligible to open an SCSS account?

Accepted Answer

You must be at least 60 years old. Retired defence personnel can open an account at age 50 (subject to conditions). Individuals who have taken voluntary retirement (VRS) or superannuation between age 55 and 60 can also open an account within one month of receiving their retirement benefits. Non-resident Indians (NRIs) and Hindu Undivided Families (HUFs) are NOT eligible for SCSS.

Question 3

How is SCSS interest taxed?

Accepted Answer

Interest earned on SCSS is fully taxable as income at your applicable slab rate. TDS (Tax Deducted at Source) applies if your total SCSS interest across all accounts in a financial year exceeds ₹50,000. Senior citizens can claim a deduction of up to ₹50,000 per year on interest income (including SCSS interest) under Section 80TTB. You can also submit Form 15H to avoid TDS if your total income is below the taxable limit.

Question 4

What is the maximum investment limit in SCSS?

Accepted Answer

The maximum investment per individual is ₹30 lakh across all SCSS accounts. The minimum deposit is ₹1,000 (in multiples of ₹1,000). Spouses can each hold separate accounts up to ₹30 lakh, giving a household maximum of ₹60 lakh. Premature withdrawal is allowed after 1 year, but attracts a penalty (1.5% of the deposit if withdrawn between years 1 and 2; 1% if withdrawn after year 2).

SCSS Calculator

Frequently asked questions

SCSS Calculator

Frequently asked questions