Hey Buddy,
My father is a senior citizen and opted for the SCSS scheme and was enquiring about, "Is SCSS interest taxable?" I'd be pleased to share my ideas with everyone since I've started my research about the same.
Invest in properties with NoBroker to get better returns than FD now. Let buyer plans from NoBroker help you save your money with expert strategies.An investment opportunity for Indian citizens over 60 years old is the Senior Citizens Savings Scheme (SCSS), which is backed by the government. This program's main goal is to support elderly people in ensuring a steady income stream after retirement. SCSS offers guaranteed profits every quarter because it is a government-backed investment programme. Through accredited banks and post offices in India, one may access the Senior Citizen Savings Scheme.
Is interest on SCSS taxable?
Interest rates for the Senior Citizen Savings Scheme (SCSS) are 7.4% annually for the second quarter of FY 2022–23. One of the highest interest rates available through a fixed income modest savings plan is this one.
The SCSS interest rate is analysed every quarter and could change at any time.
To answer your query, interest earned on SCSS is taxable or not, I would like to highlight the following ways in which investments made in SCSS are eligible for tax deductions:
Under section 80C of the Income Tax Act of 1961, the principal amount deposited in the SCSS is entitled to a tax deduction of up to Rs. 1.5 lakh each year.
The tax rate that applies to the individual applies to interest on SCSS. If the total amount of interest earned for a fiscal year exceeds Rs. 50,000, Tax Deducted at Source (TDS) is applicable to the interest earned. This cap on TDS deductions for SCSS investments will begin to apply in AY 2020–21.
I would like to conclude here as I believe this suffices your query, "Is SCSS interest taxable?"
Read More:
Can a Senior Citizen Invest in Both SCSS and PMVVY? Can a Senior Citizen Open PPF Account in a Bank? Which bank is best for the fixed deposits for senior citizens?Your Feedback Matters! How was this Answer?
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Authors Of The Question
Is SCSS Interest Taxable?
Tanmay
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1 Answers
2 Year
2022-08-29T20:32:00+00:00 2022-08-29T20:32:01+00:00Comment
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