The investment limit for the Senior Citizen Savings Scheme (SCSS) has been increased to Rs 30 lakh from Rs 20 lakh.

Key Highlights :

1. The Finance Ministry has notified the hike in investment limit in Senior Citizen Savings Scheme.

2. As per the notification, an individual can now invest Rs 30 lakh instead of Rs 15 lakh earlier in the scheme.

3. The interest earned from Senior Citizen Savings Scheme is eligible for deduction under Section 80TTB of the Income Tax Act, 1961.

4. The government has also revised the interest in the scheme. From April 1, 2023, the scheme will fetch an interest rate of 8.2 per cent per annum on fresh investments made.

5. Those senior citizens who have already invested Rs 15 lakh in Senior Citizens Savings Scheme can now invest more to get extra interest income.

6. The tenure of the scheme SCSS comes with a tenure of five years. The principal amount will be repaid to the senior citizen after the expiry of five years along with interest earned in the final quarter. However, the scheme allows an extension of three years at the time of maturity.

7. Premature closure A senior citizen can close the SCSS account before the expiry of five years. However, a penalty will be levied in case of premature closure of the account.

     Budget 2023 proposed a hike in investment limit in Senior Citizen Savings Scheme (SCSS). A hike of Rs 15 lakh was proposed in the SCSS. As per the proposal, the maximum investment limit in SCSS has been doubled from Rs 15 lakh to Rs 30 lakh. Now the government has issued a notification for the same.

     The notification says that the investment limit in the SCSS will now be Rs 30 lakh. This means that the maximum amount that an individual can invest in the scheme is now Rs 60 lakh. This increase in the investment limit is good news for senior citizens who are looking to save for their retirement.

     The notification also says that the government is planning to increase the contribution limit in the SCSS from the current limit of Rs 2.5 lakh to Rs 5 lakh. This will make it easier for senior citizens to save for their retirement.

     The notification says that the contribution limit in the SCSS will be increased gradually over a period of five years. This will ensure that senior citizens are not hit with a large increase in their contribution limit at one time.

     The notification also says that the government is planning to increase the interest rate on investments in the SCSS. This will make it easier for senior citizens to earn a good return on their investments.

     The notification says that the government is also planning to increase the limit on the amount that can be withdrawn from the SCSS every year. This will make it easier for senior citizens to access their savings in case they need them.

     The notification says that the government is planning to increase the limit on the amount that can be transferred from the SCSS to an individual’s pension account. This will make it easier for senior citizens to transfer their savings into an account that will help them to save for their retirement.

     The notification says that the government is also planning to increase the limit on the amount that can be transferred from the SCSS to an individual’s Individual Retirement Account (IRA). This will make it easier for senior citizens to transfer their savings into an account that will help them to save for their retirement.

     The notification says that the government is also planning to increase the limit on the amount that can be transferred from the SCSS to an individual’s National Pension Scheme (NPS). This will make it easier for senior citizens to transfer their savings into an account that will help them to save for their retirement.

     The notification says that the government is also planning to increase the limit on the amount that can be transferred from the SCSS to an individual’s provident fund account. This will make it easier for senior citizens to transfer their savings into an account that will help them to save for their retirement.

     The notification says that the government is also planning to increase the limit on the amount that can be transferred from the SCSS to an individual

Continue Reading at Source : economictimes_indiatimes