Senior citizens can save tax in this scheme

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The deadline for filing Income Tax Return (ITR) is fast approaching. There are no separate tax saving schemes for senior citizens. People who get high pension after retirement or earn huge amount from investment, they are not able to find tax saving options. Senior Citizen Saving Scheme (SCSS) is a good option for such people. Senior citizens whose tax has been deducted this time and have not invested in SCSS can invest in this scheme to save tax from next time. Under Section-80C in SCSS, you can take advantage of tax exemption on investment up to Rs 1.5 lakh every year. Along with this, you will get excellent returns along with safe investment.

What  is the plan?

In the budget for FY 2024, the central government has doubled the maximum deposit amount under the Senior Citizen Savings Scheme to Rs 30 lakh. The purpose of starting this scheme To make old age secure and help in getting a fixed income after retirement. In this scheme, more attractive interest is being given by the top public sector banks. Presently it is getting interest at the rate of 8.2 percent per annum.

Tax calculation:

The amount invested in Senior Citizen Savings Scheme is eligible for tax deduction under section 80C of Income Tax. The interest received on this investment is added to the annual income of the investor, on which tax will have to be paid according to the slab. TDS will be deducted if the interest income is above Rs.50,000. If an investor does not come under the purview of income tax, he can avoid TDS deduction by filling Form 15G or 15H.

There has been record investment in the scheme:

Under this scheme, 6.52 lakh new accounts have been added in the first three months of FY 2024, while the figure was 2.96 lakh a year ago. An investment of Rs 55,000 crore has come in the first quarter of the financial year under the Senior Citizen Savings Scheme. This amount is 176 percent more as compared to last year. There has been a huge increase in the investment of this scheme due to getting more interest as compared to other small schemes.

How can you open the account:

You can open an account in the Senior Citizens Savings Scheme in the post offices of the country which have the facility to open a savings account. Apart from this, public sector banks like SBI, Bank of Baroda and PNB are also providing investment facility in this scheme. You can choose the option to open an account as per your convenience.