Maturity Period of Senior Citizens Saving Scheme (SCSS)
A Senior Citizen Savings Scheme matures after 5 years from the date the account is opened. The account holder, however, has the option of extending the account for another three years after it has matured. This extension option is currently available only once, and the request must be made within one year of the SCSS account’s maturity.
Senior Citizen Saving Scheme
A Senior Citizens Saving Scheme (SCSS) is a government-sponsored retirement savings program. Senior citizens in India can invest a lump sum in the scheme, either individually or jointly, and receive regular income as well as tax benefits. It has been proposed to exempt senior citizens from filing income tax returns if their only annual income source is pension and interest income. Section 194P has been added to force banks to deduct tax on senior citizens over the age of 75 who receive a pension and interest income from the bank.
Important Terms/Definitions:
NRI: A non-resident Indian is a person who is an Indian citizen or of Indian origin but is not a resident of India.
HUF: It is meant for Hindu Undivided families. By forming a family unit and pooling assets to form a HUF, you can save taxes. HUF is taxed independently of its members. A Hindu HUF can be formed by a Hindu family. Hindu Undivided families can also be formed by Buddhists, Jains, and Sikhs. The HUF has its own PAN and files tax returns separately from its members.
Premature withdrawal: It is the withdrawal of funds from a fixed deposit account before the maturity date.