₹30L max (2x raised in 2023). 8.2% quarterly. 5+3 year tenure. 80C ₹1.5L deduction. Senior couple ₹60L deployment = ₹4.92L annual income. Best risk-free senior scheme.
SCSS = Senior Citizens Savings Scheme. MAJOR 2023 BUDGET CHANGE: (1) MAXIMUM INVESTMENT RAISED from ₹15 LAKH to ₹30 LAKH. 2X INCREASE. (2) Applies from April 1, 2023. (3) Massive benefit for senior + HNW retirees. EXISTING ACCOUNTS pre-April 2023: limited to old ₹15L. NEW ACCOUNTS post-April 2023: ₹30L max. STRATEGIC: (1) Senior couple can deploy ₹60L COMBINED (₹30L each). (2) Major retirement income generator. (3) Government-backed — zero credit risk.
SCSS ELIGIBILITY: (1) AGE 60+ (general senior citizens). (2) AGE 55+ for VRS retirees (within 1 month of retirement). (3) AGE 50+ for defense personnel (early retirement). TENURE: (1) BASE: 5 YEARS. (2) EXTENSION: ADDITIONAL 3 YEARS available. (3) PREMATURE CLOSURE allowed (with penalty 1-2% based on tenure). (4) AUTO-RENEWAL not available. INTEREST RATE: 8.2% per annum, paid QUARTERLY. RATE reviewed quarterly by Finance Ministry — generally stable.
SCSS DUAL BENEFIT: (1) 8.2% INTEREST: ₹30L investment = ₹2.46L annual income, ₹61.5K quarterly. (2) 80C DEDUCTION: ₹1.5L premium qualifies under Section 80C (old regime). REQUIRES: (1) Filing under OLD REGIME for 80C benefit. (2) Counted in ₹1.5L overall 80C limit (combined with PPF, ELSS, etc.). EXAMPLE: Senior couple, both invest ₹30L SCSS = ₹60L total. Annual income ₹4.92L combined. 80C deduction ₹1.5L each = ₹3L family total. SIGNIFICANT BENEFIT.
SCSS TAX TREATMENT: (1) INTEREST FULLY TAXABLE at slab rate. (2) TDS 10% if interest > ₹50K annually (per Section 194). (3) NO TDS if Form 15H submitted (senior with income < tax-exempt limit). (4) 80TTB ₹50K interest deduction (seniors only). (5) MATURITY proceeds: principal received tax-free + final interest taxable. EXAMPLE: ₹30L SCSS, ₹2.46L annual interest. (a) Senior 80TTB deduction ₹50K. (b) Net taxable interest ₹1.96L. (c) Tax at slab rate. (d) Combined with pension + other income for total tax.
SCSS STRATEGY: (1) MAX OUT ₹30L per senior — strongest retirement income generator. (2) COUPLE: ₹60L combined deployment. (3) 80C ₹1.5L benefit if old regime + utilize. (4) FORM 15H to avoid TDS (if total income < tax-exempt limit). (5) QUARTERLY INTEREST: direct credit to bank account. (6) COMBINE WITH POMIS (monthly income): SCSS quarterly + POMIS monthly = stable income mix. (7) PPF + SCSS combo: tax-free + high-rate retirement. (8) NRI NOT ELIGIBLE for SCSS. (9) PREMATURE EXIT: 1-2% penalty. (10) MATURITY REINVESTMENT: open new SCSS (₹30L fresh). RECOMMENDED for all 60+ Indian residents — best risk-free senior income.