SCSS: In terms of increasing the maximum investment limit and increasing the annual interest rate, then the income earned by senior citizens every month in the form of interest will double from before. Let’s know about it in detail.
Many such provisions have been made by the government for the common man in this budget. Finance Minister Nirmala Sitharaman has made a tremendous announcement in the 2023 general budget for senior citizens along with giving relief to income tax payers under the new tax regime. Under this, the maximum investment in Senior Citizen Savings Scheme (SC SS) has been increased to Rs 30 lakh. Earlier this limit was Rs 15 lakh.
Interest rate also increased
For the quarter ending March 31, 2023, the interest rate on this scheme has been increased to 8 percent by the government. Before January 1, 2023, interest was available on this government scheme at the rate of 7.6 percent per annum. In view of increasing the maximum investment limit and increasing the annual interest rate, the income earned by senior citizens every month in the form of interest will double from before.
How much will be the benefit
Earlier, on investing Rs 15 lakh in this scheme, at the rate of 7.6 percent, Rs 20.70 lakh was received at the time of maturity. Which is 1.14 lakh per annum and 9.5 thousand per month.
But on increasing the investment limit and interest rate, depositing Rs 30 lakh will get a total of Rs 42 lakh with interest of Rs 12 lakh on maturity of five years. It is 2.4 lakhs on annual basis and 20 thousand rupees monthly. That is, in comparison to the earlier nine and a half thousand rupees, now senior citizens will be able to get 20 thousand.
What is the plan
The ‘Senior Citizen Savings Scheme’ is run by the government for the elderly citizens of the country. The purpose of starting this scheme is to provide financial help to retired persons. Under the scheme, senior citizens get money in the form of interest every month.
Tax rebate up to 1.5 lakh
In the Senior Citizen Savings Scheme, the interest rate is revised on a quarterly basis by the government. In this, both husband and wife can open a single account or joint account with each other. The special thing is that under Section 80C of the Income Tax Act, you can get tax rebate of up to Rs 1.5 lakh on investing in it.
