Post
Office Senior Citizens Savings Scheme has been notified with effect from August
2, 2004. The Scheme offers a new avenue of investment and return for Senior
Citizen. The investment under this scheme qualify for the benefit of Section
80C of the Income Tax Act, 1961 from 1.4.2007.
Salient
features of POSCS (Post Office Senior Citizens Savings) Scheme
Eligibility :
Any
citizen, who has attained age of 60 years or above on the date of opening of
the account.
Who
has attained the age 55 years or more but less than 60 years and has retired
under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on
the date of opening of the account within one month from the date of
receipt of financial benefit.
No
age limit for the retired personnel of Defence services provided they fulfill
other specified conditions.
A
depositor may open the account in his individual capacity or jointly with
spouse.
The
accounts may be opened singly or jointly with spouse.
More
than one account can be opened provided the total amount deposit does not
exceed the prescribed limit.
Eligible
applicants can open account by submitting application on Form A.
Non-residents
and HUFs are ineligible to open the account under the scheme.
In
case of cheque, the date of realization
of cheque in Govt. account shall be date of opening of account.
Minimum amount : Rs. 1,000/-
Maximum amount : Rs. 15,00,000/- (Rs. fifteen lakhs).
In case of retiring employees the amount cannot exceed the amount of retirement
benefits.
Maturity period : Five
years
The
depositor may extend the account for a further period of 3 years by submitting
application on Form B
Nomination facility : Available
A
depositor may change nomination by submitting application on Form C.
Interest
|
Period
|
Interest Rate
|
|
Upto 31.03.2012
|
9.00% per annum
|
|
01.04.2012 to 31.03.2013
|
9.30% per annum
|
|
01.04.2013 to 31.03.2014
|
9.20% per annum
|
|
01.04.2015 to 31.03.2016
|
9.30% per annum
|
|
01.04.2016 to 30.09.2016
|
8.60% per annum
|
|
01.10.2016 onwards
|
8.50% per annum
|
Interest
is payable quarterly on 31st March, 30th June, 30th September and 31st
December.
If
the interest payable every quarter is not claimed by a depositor, such interest
do not earn additional interest.
Mode of payment of
interest :
In
case of SCSS accounts, quarterly interest shall be payable on 1st working day
of April, July, October and January. It will be applicable at all CBS Post
Offices.
Premature withdrawal :
In
case the account is closed after expiry of one year but before expiry of two
years from the date of opening of the account, an amount equal to 1.5% of the
deposit shall be deducted and the balance paid to the depositor.
Premature
closure is allowed after one year on deduction of 1.5% interest & after 2
years on deduction of 1% interest.
Application
for premature closure of the account may be submitted on Form E.
No
deduction shall be made in case of premature closure of an account at any time
due to death of a depositor. Application for premature closure by spouse (Joint
Holder)/nominee(s)/legal heirs of the account may be submitted on Form F.
Tax benefits
Investment
under this scheme qualifies for the benefit of Section 80C of the Income Tax
Act, 1961 from 1.4.2007.
The
Account can be transferred from one post office to another.
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