Post Office Scheme: If you’re looking for a stable and regular income after retirement,the Post Office Senior Citizens Savings Scheme (SCSS) is an excellent option. This scheme is specially designed for people over 60 years of age and provides them with a stable income without any worries.
A completely safe investment
This scheme is operated through post offices and approved banks. Your money is completely secure,because it is guaranteed by the government. At present,it offers an interest rate of 8.2% per year,which is higher than a typical fixed deposit (FD). Start investing with a small amount Opening an account under this system does not require a large deposit. Start with only 1,000 and invest up to 30 lakh.
In addition,you will also receive a tax deduction of up to 1.5 million per year under article 80C of the Income Tax Act. Who can open an account Anyone over 60 years of age can invest in this program. Husband and wife can also open joint accounts. The VRS recipients (age 55 and over) and defence retirees (age 50 and over) are also eligible to invest. The period of tenure and interest is five years. Interest is transferred to your account every three months (quarterly). If necessary,the term of office can be extended for three years after maturity.
How to get Rs 51,250 every 3 months?
If you invest Rs 25 lakh in this scheme,you will receive Rs 51,250 every quarter at an interest rate of 8.2%. This means you can generate a regular income of approximately Rs 17,000 per month. Your entire principal amount is safely returned after 5 years. Overall,this scheme is an excellent source of safe,stable,and reliable income for senior citizens.
Income tax benefits
Investing in SCSS entitles you to a deduction under Section 80C of the Income Tax Act,allowing you to save tax. However,the interest earned is taxable. The maturity amount is also exempt from tax. This means it falls under the ETE category. If the account holder dies,interest on the account continues to accrue at the same rate as a Post Office Savings Account until the account is closed.
