The returns from this scheme are not only good, but senior citizens also get tax benefits. This scheme is for senior citizens. So if you are 60 years of age or above then you can invest in it.
New Delhi. The Senior Citizen Saving Scheme of the Post Office is a safe scheme for investment and a tremendous scheme in terms of returns. Very few savings schemes will be such where you will get an interest of 7.4 percent on investment. In this scheme, the interest rate is reviewed every quarter. However, there has been no change in this for the last several quarters.
The returns from this scheme are not only good, but senior citizens also get tax benefits. Today we will tell you who can invest in this scheme. Along with this, it will also tell you how to double its interest and how you will get tax benefit.
Who can invest
This scheme is for senior citizens. So if you are 60 years of age or above then you can invest in it. Apart from this, people between 55-60 who have taken VRS or early retirement can invest in it within 1 month of retirement. However, the 1-month limit does not apply to those who retired in 2020 during Kovid-19. People who retire from the defense sector can invest in it even after the age of 50. But the limit of 1 month applies to them too.
This is the minimum investment
You have to make, you can start this account with an investment of Rs 1,000 and in the same way 1,000 multiples can be invested in it. The account holder can invest a maximum of Rs 15 lakh in this. This scheme matures in 5 years but the account holder can extend it for another 3 years by completing some formalities.
Benefit of tax exemption
You can get exemption under the Income Tax Act 80C on investment up to Rs 1.5 lakh in this. If the interest exceeds Rs 50,000, then tax will have to be paid on it. Money has to be deposited in this account in one go.
How to double interest
Rs 15 lakh can be deposited in this account. At 7.4 per cent, you will get an interest of Rs 27,750 every quarter and Rs 1,11,000 in a year. But if you open a joint account, then the maximum investment limit will increase to Rs 30 lakh. After doubling the investment amount, the interest will be doubled to Rs 2.2 lakh.
