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Rs 61,500 Interest/quarter for Senior Citizens: Retirement is an important stage for everyone, where income options for many senior citizens may deplete. In such a time, investments that they make may come handy. Some investment schemes provide them secure environs of earning income for a long period after investing one time. Senior Citizens Savings Scheme (SCSS) is one investment where senior citizens can invest an amount at the time of opening an account and get quarterly income for 5 consecutive years.

Not just that, if they want, they can extend his account for further 3 years and get the same interest during that period.

Once they close the account, they get their principal amount back. Know salient features of SCSS, and how a senior citizen can get Rs 61,500 quarterly income after investing one time.

An individual above 60 years of age can open a single or a joint account.

Retired civilian employees above 55 years of age and below 60 years of age, subject to condition that investment to be made within 1 month of receipt of retirement benefits.

Retired defence employees above 50 years of age and below 60 years of age, subject to condition that investment to be made within 1 month of receipt of retirement benefits.

The scheme provides the joint highest interest rate at a 8.2 per cent alongside Sukanya Samriddhi Account (SSA). The SCSS interest is payable from the date of deposit to March 31/September 30/December 31 in the first instance and thereafter, it will be payable on April 1, July 1, October 1 and January 1.    

A senior citizen can make only one deposit in the account in the multiples of Rs 1,000. The maximum amount is Rs 30 lakh.

Investment under SCSS qualifies for Section 80C tax benefits. The maximum tax benefit limit is Rs 1.50 lakh.

Interest is taxable if the total interest in all SCSS accounts exceeds Rs 50,000 in a financial year and TDS at the prescribed rate shall be deducted from the total interest paid. 

No TDS will be deducted if form 15 G/15H is submitted and the accrued interest is not above the prescribed limit.

For this, an account holder needs to invest Rs 30 lakh in SCSS. In such a way, they will get a fixed quarterly income of Rs 61,500. In 5 years, the total interest that they will earn will be Rs 12,30,000. 

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