About the Senior Citizen Savings Scheme (SCSS) Calculator

The Senior Citizen Savings Scheme (SCSS) is a government-sponsored savings instrument designed to provide a secure and regular income stream to senior citizens in India. It is one of the most popular and trusted investment options for retirees due to its high safety and attractive interest rates. This calculator helps you easily determine the exact quarterly interest payout you will receive from your SCSS investment.

How is the SCSS Income Calculated?

The calculation for SCSS is based on simple interest, as the interest is paid out quarterly and not reinvested. The annual interest is calculated on your principal deposit, and this amount is then divided by 4 to determine your quarterly income. The interest rate is fixed for the entire 5-year tenure when you open the account.

Frequently Asked Questions (FAQ)

Who is eligible for SCSS?

The eligibility criteria for opening an SCSS account are:

• An individual who has attained the age of **60 years or above**.
• An individual who has attained the age of 55 years but is less than 60 years and has retired on superannuation or under a Voluntary Retirement Scheme (VRS), provided the account is opened within one month of receipt of retirement benefits.
• Retired personnel of Defence Services (excluding civilian defence employees) aged 50 years and above.

What are the investment limits?

An individual can invest a minimum of ₹1,000 and a maximum of **₹30 lakh** in an SCSS account. The investment must be made in multiples of ₹1,000.

What is the tenure and can it be extended?

The SCSS has a fixed tenure of **5 years**. After maturity, the account can be extended for a further block of **3 years**. This extension must be applied for within one year from the date of maturity.

Is the interest from SCSS taxable?

Yes, the interest earned from SCSS is fully taxable and is added to your income under "Income from Other Sources". If the total interest earned across all SCSS accounts exceeds **₹50,000** in a financial year, Tax Deducted at Source (TDS) is applicable. However, you can submit Form 15H if your total income is below the taxable limit to avoid TDS.

Does the investment in SCSS qualify for tax benefits?

Yes, the amount invested in an SCSS account is eligible for tax deduction under **Section 80C** of the Income Tax Act, up to the limit of ₹1.5 lakh per financial year.

Is premature closure of an SCSS account allowed?

Yes, premature closure is permitted, subject to penalties:

• If closed after 1 year but before 2 years, **1.5%** of the principal is deducted.
• If closed after 2 years but before 5 years, **1%** of the principal is deducted.