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SENIOR CITIZEN

AMIT ADHIA (ca) (110 Points)

29 January 2009

IS pENSION FROM Senior Citizen Savings Scheme Taxable ?

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Originally posted by :amit
"	IS pENSION FROM Senior Citizen Savings Scheme Taxable ?	"

Pension will be taxable if earlier amount of contribution has been deducted u/s 80ccc

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If deduction is claimed u/s 80ccc, pension will be tyaxaxble in the hands of assessee or the nominee in the year of receipt

CA. Ashok shah (CHARTERED ACCOUNTANT) (333 Points)
Replied 29 January 2009

Interest on Senior Citizen Savings Scheme, 2004 (i.e.SCSS, 2004) (Notified Scheme of Post Office) is taxable under the head “Income from Other Sources”. If interest exceeds Rs.10000/- in a year, it is subject to TDS also u/s.194A.

Abhinav Agarwal (M.Com C.A SAP Consultant) (814 Points)
Replied 29 January 2009

HI..

You need to tax such interest every year on accrual basis. What i believe is there is no system of pension in SCSS account. You get Higer interest than normal deposits(as it is for Senior citizens) + rest all are same like fixed deposits.

Regards

CA. Ashok shah (CHARTERED ACCOUNTANT) (333 Points)
Replied 29 January 2009

The Scheme of SCSS, 2004 is for individuals of 60 years of age or above on the date of opening of an account. Minimum Rs.1000/- and Maximum Rs.1500000/- can be invested in overall. Rate of interest is 9% p.a. payable quarterly on 31^st March, 30^th June, 30^th September and 31^st December. The Scheme is for 5 years and extendable by another 3 years. From Asstt Year 2008-09, deposit in the said account is eligible for deduction u/s.80C upto an amount of Rs.100000/-.