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.
What is the TDS rate for SCSS?
Banks are required to deduct TDS at the rate of 10% in case of interest income is more than ₹40,000 ( ₹50,000 in case of senior citizens) in a financial year. In case of ₹5 lakh interest income, TDS at the rate of 10% works out to be ₹50,000. Therefore, banks may deduct TDS at 20% instead of 10% in such cases.
Is 15H applicable for SCSS?
Similarly, senior citizens have to deposit Form 15H to stop TDS, if interest income from deposits like FD, RD, MIS, SCSS crosses Rs 50,000, but net income remains below the taxable limit or total interest income doesn’t cross the taxable limit.
Is the interest on senior citizen saving scheme 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. Getty Images The scheme matures at the end of five years but is extendable by a further three years.
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.
Can SCSS be closed prematurely?
Premature withdrawal or closure of the SCSS account is permitted after completion of one year from the date of opening the account after deducting a penalty for early withdrawal or closure. The penalty varies from 1-1.5 per cent, depending on the completed tenure of the account.
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 husband and wife both invest in SCSS?
Ans: Yes, one can open a joint SCSS account with his/her spouse only and the maximum amount that can be invested in it is Rs. 15lakhs only.
Does HDFC offer SCSS?
New Delhi: Several banks including State Bank of India, HDFC Bank, Bank of Baroda, are offering senior citizens special fixed deposit (FD) schemes, providing higher interest rates on term deposits.
Are seniors exempt from TDS?
For senior citizens, an annual income of ₹five lakh is exempted from tax. This means that senior citizens with an interest income of ₹five lakh in a financial year don’t have to file ITR. However, as the new rule says, there’s no exception for TDS even if a person is exempted from filing ITR.
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 on SCSS tax free?
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. This limit for TDS deduction on SCSS investments is applicable from AY 2020-21 onwards.
Which bank gives highest interest rate for senior citizens?
Top 10 Public Sector Banks Providing Higher Returns On FDs For Senior Citizens
|Sr No.||Banks||Interest Rate|
|1||Bank of Baroda||6.25%|
|2||State Bank of India||6.20%|
|3||Union Bank of India||6.10%|