Senior citizen saving scheme (5 year scheme)

This query is : Resolved

Aman m (Querist)
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22 July 2017 sir, kindly explain me some few points related to this scheme.
1. As per section 80 C, rs.1,50,000/- can be saved.. If i invest/start my account with Rs.1,50,000/- for five years tenure the whole amount is exempt under section 80 C.. for one Financial year i.e. 2017-2018 or for all the remaining financial years i.e. 2018-2019, 2019-2020, 2020-2021,2021-2022 Or it can only be used under 80C in the Financial year in which the account is opened while filing ITR return. in simple words can the principal amount of rs.1,50,000/- be used as tax relief under sec.80 C in one assessment year or for the rest of 04 assessment years.

2. If the interest is paid quartely, will the interest be added in the SCSS account or will be deposited automatically in saving account so after 5 years the person will get only the amount by which he had opened the account... i.e. Rs.1,50,000/- and the interest in saving account quartely basis.

3. As you can open the account with minimum rs.1000/- and maximum Rs.1500000/- suppose i open my account with rs.100000/- can i add more money i.e. another rs.100000/- in next financial year in the same SCSS account or not.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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22 July 2017 Sir,

1. The amount invested in a year will be allowed as tax deduction only in the year in which the amount is invested.

2.Interest is payable monthly in SCSS accounts and it will be credited in your savings.

3. Investments in subsequent year will not be deposited in the same SCSS account but will be opened as a separate SCSS account