Post Office Scheme- Want to invest on something which is profitable? Then this article will made your day. If you want to invest in a place where your investment is safe and you also get guaranteed returns, then the post office schemes can be reliable for you. One such scheme of the post office is the Senior Citizen Savings Scheme (SCSS) which is a great option for the elderly, in which one can get an opportunity to earn up to Rs 20,000 every month sitting at home.
What is Post Office Senior Citizen Savings Scheme?
This scheme is especially for citizens aged 60 years or above. People aged 55 years who take VRS from government service can also invest in it. Apart from this, people retired from defense can also open an account in it at the age of 50. You can invest in this scheme at an interest rate of 8.2%, which matures in 5 years, and if you want, you can also extend it for 3 years.
If an investor invests Rs 30 lakh in this scheme, he will get an annual interest of Rs 2.46 lakh. This means a fixed income of about Rs 20,500 every month, that too in a completely safe manner.
Will there be tax exemption as well?
In this scheme, a deduction of up to Rs 1.5 lakh is available under Section 80C of Income Tax. But if the annual interest is more than Rs 50,000, then TDS can be deducted. However, if you fill Form 15G or 15H, then TDS will not be deducted.
Facility to close account also
If for any reason the account has to be closed before maturity, then that facility is also available. If you close this account before 1 year, you will not get any interest. On closing it between 1 to 2 years, 1.5% interest will be deducted whereas on closing it between 2 to 5 years, 1% interest will be deducted.
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