The Department of Posts has extended the prescribed time limit of one month to invest retirement benefits in Senior Citizens’ Savings Scheme (SCSS).
SCSS Scheme: Government has relaxed the time frame for investing in the Senior Citizens’ Savings Scheme, 2019. Those who have retired recently especially during the lockdown period in the country can now invest in the Senior Citizens’ Savings Scheme (SCSS) anytime up to June 30, 2020. As per rules, one is supposed to invest retirement funds within one month of retiring. In view of the lockdown, the government has taken this step to safeguard the interest of the depositors.
As per the SCSS rules, an individual who has attained the age of 60 years on the date of opening of the account or who has attained the age of 55 years or more but less than 60 years, and who has retired on superannuation or otherwise on the date of opening of an account are eligible to invest in SCSS. This is subject to the condition that the account is opened by such individual (within the age bracket 55-60 years ) within one month of the date of receipt of the retirement benefits and proof of date of disbursal of such retirement benefit along with a certificate from the employer indicating the details of retirement on superannuation is furnished with the application form.
The Department of Posts under the Ministry of Communications has issued a circular with the guidelines regarding the extension of the prescribed time limit of one month to invest retirement benefits for retirees in Senior Citizens’ Savings Scheme (SCSS).
As per the new rules, an individual retired (within the age bracket 55-60 years) on superannuation or otherwise and who has received the retirement benefits in February-2020, March-2020 and April 2020 are eligible to open SCSS account up to 30th June 2020.
Further, the personnel from Defence services retired and got retirement benefits in February 2O20, March- 2020 and April-2020 are also eligible to open SCSS account up to June 30, 2020, under the prescribed eligibility conditions applicable to them.
SCSS is a popular investment option for those who are 60 years and above. SCSS is for a period of 5 years and more than one account may be opened, but the combined limit is capped at Rs 15 lakh. Interest earned is fully taxable and to be added to one’s ‘Income from other sources’. SCSS suits senior citizens looking for a high fixed rate of return and a regular income. After maturity, the account can be extended for further three years within one year of the maturity by giving application in a prescribed format. In such cases, the account can be closed at any time after the expiry of one year of extension without any deduction. Currently, (April to June 2020) the interest rate on SCSS is 7.4 per cent annum, payable quarterly.