In this programme, senior citizens can save on taxes.
In this programme, senior citizens can save on taxes.
The end of the window in which to submit one’s Income Tax Return (ITR) is drawing near. There are no senior citizen-specific tax breaks or deductions that can be taken. People who receive a sizable pension after retirement or who make a significant amount of money from investments are unable to locate tax planning opportunities.
The Senior Citizen Savings Scheme (SCSS) is an excellent choice for those in this situation. Senior citizens who have already had some of their taxes deducted but who have not yet contributed to SCSS are eligible to participate in this tax-savings programme and may do so. You are able to take advantage of a tax exemption on investments of up to Rs 1.5 lakh per year if your SCSS account is qualified under Section-80C. In addition to this, your investment will be risk-free while yet providing you with fantastic profits.
What exactly are we going to do?
The maximum amount that can be deposited into the Senior Citizen Savings Scheme has been raised to Rs 30 lakh by the central government, doubling its previous limit of Rs 15 lakh. The establishment of this plan’s goals are to ensure a comfortable old age and facilitate the acquisition of a steady income after retirement. The most prestigious banks in the public sector are participating in this initiative by offering more alluring interest rates. At the moment, interest is being added to it at the rate of 8.2 percent on a yearly basis.
Tax calculation:
Under subsection (c) of section 80C of the Income Tax Act, taxpayers may claim a tax deduction for the amount that they have contributed to the Senior Citizen Savings Scheme. The investor must add the amount of interest earned on this investment to their annual income before calculating the amount of tax that must be paid according to the applicable slab. If the interest income is more than Rs.50,000, then TDS will be taken from it. If an investor does not have to pay income tax, then he can avoid having tax withholding taken out of his earnings by completing either Form 15G or Form 15H.
There has been an unprecedented amount of money invested in the scheme:
The first three months of the fiscal year 2024 saw a total of 6.52 lakh new accounts being opened as a result of this programme; this number was only 2.96 lakh a year earlier. Within the context of the Senior Citizen Savings Scheme, the first three months of the current fiscal year saw an investment totaling 55,000 billion rupees. When compared to the amount from the previous year, this sum is 176 percent more. When compared to investments made in other modest schemes, the amount of money put into this plan has seen a significant boost thanks to the increased attention it has received.
How can you get started with the account today:
You are able to open an account in the Senior Citizens Savings Scheme at any of the country’s post offices that offer the ability to open a savings account. In addition to this, public sector banks such as the SBI, Bank of Baroda, and PNB are also providing the facility for investments in this plan. You have the choice to go ahead and open an account whenever it’s most convenient for you.
