The Senior Citizen Savings Scheme is a long term investment option by the Government of India for senior citizens

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Senior Citizen Savings
Scheme (SCSS)

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February 2017
Introduction
The Senior Citizen Savings Scheme (SCSS) has become a popular product for those over 60 years of age as
it offers :
 Regular income
 Highest safety
 Tax saving
 SCSS offers capital protection, along with quarterly interest payment as a source of income
 The scheme is backed by the government and therefore, offers a sovereign guarantee
 Interest income from SCSS helps retirees bridge the gap between their pension and the last salary
drawn

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Salient features
 Who can invest in SCSS?
 Any individual above 60 years of age are eligible to invest in SCSS
 Additionally, early retirees between 55 and 60 years can also invest in SCSS
 Individuals who opted for the voluntary retirement scheme (VRS) or superannuation, can also invest in
the scheme, provided the investment is done within a month of receiving retirement benefits
 Retired defence personnel, excluding civilian defence personnel, can invest in this scheme irrespective
of their age, subject to other conditions
 How to invest?
 An individual can invest in the scheme by opening either an individual or a joint account (along with
the spouse) with either a Post Office or a Scheduled Commercial Bank
 How much can one invest?
 An individual, singly or jointly, can invest up to Rs 15 lakhs, in multiples of Rs 1,000
 The amount invested in the scheme cannot exceed the money one receives on retirement
 As per the Senior Citizen Scheme rules of the Income Tax Department, the account can be opened by
cash for amounts below Rs 1 lakh and by cheque for any amount above Rs 1 lakh
 The investment date in the scheme is taken as the date on which the cheque is realised in the
Government's account

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Salient features
 Number of accounts
 There is no limit on the number of accounts that can be opened, but the total amount in all the
accounts must not breach the maximum investment
 Proof of investment
 The Passbook has all details like the date of opening, the account number, the depositor's name,
photograph, address, the amount deposited, dates and amount of the quarterly interest payable,
maturity date and amount, nomination details
 Tenure
 The tenure of the scheme is five years, which can be further extended for three more years
 Premature withdrawals are allowed, but only after one year and with premature withdrawal
charges
 Maturity
 If the depositor wishes to close the account after the completion of five years and receive the
maturity amount then he needs to submit the duly filled 'Closure Form', along with the passbook
 Taxation
 Investment in SCSS qualifies for deduction under Section 80C of the Income Tax Act. However,
this tax benefit is under the overall current ceiling of Rs. 1.5 lakh per annum fixed for all
investments under Section 80C

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Documents required
Following is the list of the documents required for investing in the scheme:
 Duly filled application form, available at the post office or bank
 Know Your Customer (KYC) form
 Photographs of the applicant/s
 PAN Card
 Address proof
 Age proof
 In the case of retirees, a certificate from the employer, stating the retirement was on superannuation
or otherwise, retirement benefits, employment held (designation) and the period of employment.
 Proof of date of disbursal of the retirement benefits

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