Frequently Asked Questions about Senior Citizens Savings Scheme (SCSS)
The whole amount is attributed to the first depositor or applicant. The addition of a spouse as a joint account does not matter in this case.
Yes, individual accounts can be opened as well, provided the deposit limit is a maximum of Rs.15 lakh. Of course, it has to adhere to the rules of the scheme.
No, not with this scheme.
Yes if the interest exceeds Rs.10,000 per annum, TDS is applicable. In this scheme, interest payments are no exemption to deduction of tax at source.
As per government regulations, tax has to be deducted at source as per the minimum balance.
No a person holding a Power of Attorney cannot sign in place for the nominee in the nomination form.
Yes, the nominee can hold the account of the expired depositor in case of a death, provided it pertains to the SCSS Rules.
No fee is charged.
Periodic withdrawals for loans is not possible in this scheme as it defies the very nature of the scheme.
As per Government Saving promotion Act, 1873 Notification dated 12 Dec 2019 changes as follows.
The account holder may withdraw the deposit and close the account at any time on an application in Form-2 subject to the following conditions, namely:-
(i) In case, the account is closed before one year after the date of opening of account, interest paid on the deposit in the account shall be recovered from the deposit and the balance shall be paid to the account holder.
(ii) In case the account is closed after the expiry of one year but before the expiry of two years from the date of its opening, an amount equal to one and a half per cent. of the deposit shall be deducted and the balance shall be paid to the account holder.
(iii) In case the account is closed on or after the expiry of two years from the date of its opening, an amount equal to one per cent. of the deposit shall be deducted and the balance shall be paid to the account holder.
No, it is not possible, though an Indian moving abroad and having a SCSS can continue to maintain it.
Using Form G, an account can be transferred from one deposit office to another.
Yes, within one year after maturity a depositor can extend their SCSS for a period of three years.
The account will be close, interest deducted and the deposit money returned to the depositor.
Payments of commission under this scheme has been discontinued.
The senior citizens savings scheme is an Indian government sponsored program that is administered to the general public through two mediums- a list of certified banks and the offices belonging to the Indian Postal Department. The latter are just the medium and do not possess any control over the terms, rules and regulation of the actual SCSS product. Thus, it will be wrong to put one medium over the next.
However, comparatively both bank and post offices have same features in recent past. One of the best feature in Post Office - easy accessibility and auto credit to Savings Bank Account in Post Office and Transfer the amount bank from Post Office Account through IPPB. So many technological implementation processed in Post Office too.
Essentially, the documents that help the bank ascertain your age are required when opening up the SCSS account. These include, Passport/ Birth Certificate/ Voter’s ID/ Senior Citizen Card/ PAN, etc.
If you have opened an individual account (without any joint investor) and unfortunately, you were to pass away unexpectedly, the SCSS account will be primed up for closure. To affect such a termination, the account holder’s nominee must forward an application in Form ‘F’. The Annexures II & III of such a form must be attested by a public notary or the Oath Commissioner.
When speaking of the eligibility for the senior citizens savings scheme, people belonging to the age group of 55 years- 60 years can apply, provided that they must open this account within one month of receipt of ‘retirement benefits’. Also, the invested amount must not exceed the net value of the ‘retirement benefits’.
When applying for the SCSS account, you are free to propose a nominee. This activity can also be completed after your account has been in existence for a specified duration of time. Alternatively, the nomination made by you can easily be canceled or edited by submitting a fresh nomination in Form-C to the bank/post office wherein said SCSS account is being maintained.
Since you already have an SCSS account, you are free to appoint your spouse as the joint account holder. Its your age that is the qualifying factor here and not your wife’s. Thus, her age doesn’t affect her eligibility to act as your joint partner in the account. However, the converse of this isn’t possible as your wife is just 45 years old and the minimum age to be eligible to own a SCSS account is 60 years.
Before you open a Senior Citizens Savings Scheme account, ensure that you provide all the necessary information that has been requested. If it is found that the information provided by you is incorrect or false, the account shall be closed with immediate effect. The deposited amount will be refunded to the depositor after the deduction of interest that has already been paid into the account.
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