SCSS: Why it's a lucrative pension scheme for retired?

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SCSS is a lucrative option for pension holders with tax benefits, higher interest rates and loan facilities. The government has recently increased the interest rates for the Senior Citizen Savings Scheme (SCSS) for the January-March quarter of FY2022-23 to 8%. Also, the investment limit has increased from Rs. 15 lakhs to Rs. 30 lakhs in the union budget 2023-24.

High Interest Income: The interest rate on SCSS is typically higher than most other savings schemes. As of March 2023, the current interest rate on SCSS is 8% per annum, which is subject to change as per government policies. Interest income is taxable.
Tax Benefits: Investments made in SCSS are eligible for tax benefits under Section 80C of the Income Tax Act, (as per old tax regime) up to a maximum limit of Rs. 1.5 lakh per year.
Flexible Investment Amount: The minimum investment amount for SCSS is Rs. 1,000, and the maximum investment amount is Rs. 30 lakh.
Flexible Investment Tenure: The investment tenure for SCSS is five years, which can be extended for an additional three years

Loan facility: The maximum loan amount that can be availed is 50% of the account holder's deposit amount. It is available after 1 year completion.

Senior citizen savings scheme | Section 80 C | 5 years | Loan facility | Elder living

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