The current interest rate applicable to SCSS is 7.4%. Tax benefits under Section 80C are available but interest is fully taxable. 1. SCSS is a government-backed retirement savings programme.
Is interest earned on SCSS taxable?
Interest on SCSS is taxable as per the tax slab applicable to the person. In case the interest amount earned is more than Rs. 50,000 for a fiscal, Tax Deducted at Source (TDS) is applicable to the interest earned.
Is interest on SCSS eligible for 80TTB?
Yes, you can claim deduction under section 80TTB on both interest form savings and deposit accounts with banks, but the deduction amount is limited to Rs. 50000.
Illustration on tax savings by senior citizens.
|Particulars||Normal taxpayer||Senior Citizen|
|Less: Deduction under Section 80TTB||Not Applicable||50,000|
How much interest is tax free for senior citizen?
Tax Exemption on Interest Income
Senior citizens are eligible to get deduction up to Rs 50,000 u/s 80TTB on interest earned from banks and Post Office on savings account, fixed deposits and recurring deposits.
Is interest rate on SCSS fixed?
The interest rate declared during the time of investment remains fixed throughout the maturity tenure and is not affected by alterations in a later quarter. For instance, Mr. Sunil deposited Rs. 2 Lakh in SCSS on 11th January 2018.
Is senior citizens savings scheme interest taxable?
Senior Citizen Savings Scheme is a government-backed scheme. The current interest rate applicable to SCSS is 7.4%. Tax benefits under Section 80C are available but interest is fully taxable.
Is SCSS or Pmvvy better?
But, in SCSS, one’s interest rate may vary on the quarterly basis while in PMVVY, one’s interest rate is fixed at the time of investment for the entire investment period.” Jhaveri said that in SCSS, investment period is for five years while in PMVVY, the investment period is 10 years.
Is premature withdrawal allowed in SCSS?
“Since the SCSS has a 5-year lock-in period, any withdrawals prior to that are treated as premature withdrawals even if it is due to the death of the depositor. Premature withdrawals under the scheme also attract a major penalty which ranges from 1-1.5% on the principal amount,” R.
Can senior citizen claim both 80TTA and 80TTB?
Can senior citizens claim both 80TTA and 80TTB? No, a senior citizen can claim deduction u/s 80TTA only. Who is eligible for an 80tta deduction? An individual taxpayer and a Hindu Undivided Family (HUF) are eligible for an 80TTA deduction.
Can senior citizens claim standard deduction?
The deduction is made from the gross salary, and one can claim it as a tax exemption. … Individuals under the senior citizen category are eligible for a standard deduction of Rs 50,000 in a financial year (or amount of pension, whichever is less) for pension received from former employers.
Is senior citizen exempt from advance tax?
Advance tax applies to all taxpayers, salaried, freelancers, and businesses. Senior citizens, who are 60 years or older, and do not run a business, are exempt from paying advance tax.
What is age of senior citizen in income tax?
Criteria for very senior citizen
Must be of the age of 60 years or above but less than 80 year at any time during the respective year. Must be of the age of 80 years or above at any time during the respective year.
Which bank is best for SCSS?
List of Banks which Offer SCSS Accounts
- United Bank of India.
- Corporation Bank.
- Canara Bank.
- Dena Bank.
- Syndicate Bank.
- Central Bank of India.
- UCO Bank.
- Union Bank of India.
Can a person invest in both SCSS and PMVVY?
Both PMVVY and SCSS are applicable only to senior citizens with a minimum age limit of 60 years and over. … So this is your guide to who can invest in SCSS and who can invest in PMVVY. Only, SCSS can also be acquired from those who have received VRS.