<h1>Tax treatment of Senior Citizens Savings Scheme: deposits eligible for income-tax deduction, interest taxable and TDS applies.</h1> The Senior Citizens Savings Scheme, 2004 is operated through post offices and designated bank branches with a reported aggregate of 161,912 accounts. It sets an upper investment ceiling of fifteen lakh for persons aged sixty and a cap equal to total retirement benefits for those retired before sixty. Deposits are exempt under the applicable income-tax deduction provision, but interest earned is taxable and Tax Deduction at Source provisions apply; a specified interest rate was declared for the quarter.