Post Office Senior Citizen Savings Scheme: Many people worry about getting regular income after retirement. If you are one of them,you should know about the Senior Citizen Savings Scheme (SCSS) of the Post Office. Through this scheme,senior citizens can earn up to ₹2,46,000 every year. It also offers several other benefits. Let’s know more about it in detail.
How to Earn Money from This Scheme
The SCSS is specially designed for senior citizens. To earn money,you need to deposit a fixed amount. You get income from the interest earned on your deposit. The deposit period is 5 years,but you can extend it for another 3 years if you want.
3 Main Benefits of the Scheme
- There are three main benefits of this post office scheme.
- The first benefit is that it gives a good interest rate,so you can earn more money.
- The second benefit is that your money is safe and will be returned later.
- The third benefit is that you can also get tax benefits.
How Much Money Can You Invest?
- You can invest up to ₹30,00,000 in the Senior Citizen Savings Scheme (SCSS).
- The minimum amount to invest is ₹1,000. The current interest rate is 8.2%.
Earn ₹2,46,000 Every Year
- If you invest ₹30,00,000,you will get ₹12,30,000 in 5 years as interest.
- That means ₹12,30,000 ÷ 5=₹2,46,000 per year.
- So,you can earn ₹2,46,000 every year from this scheme.
Interest Paid Every 3 Months
- You will get interest every 3 months. If you invest ₹30,00,000,you will get ₹61,500 every quarter.
- That means you will earn around ₹20,500 every month.
Get Tax Benefits Too
- You can get a tax deduction under Section 80C of the Income Tax Act.
- But the interest you earn is taxable. If your income is high,TDS will be deducted.
You Can Extend the Scheme
- You can extend this scheme for 3 years after it ends.
- You can do this many times in blocks of 3 years.
- To extend it,submit a form at the post office within 1 year after maturity.