Press Information Bureau

Government of India

Ministry of Finance

25-November-2016 17:20 IST

Senior Citizens Saving Scheme, 2004 is a scheme of Department of Economic Affairs, Ministry of Finance and is operated through post offices and designated branches of banks. The following are the details of number of accounts being operated in various banks. 

Sr.No	Name of Bank	No. of Accounts
1.	Andhra Bank	2059
2.	Bank of Baroda	49943
3.	Punjab National Bank	25656
4.	State Bank Hyderabad	4789
5.	State Bank of India	59801
6.	State Bank of Mysore	4179
7	. Syndicate Bank	2677
8.	Union Bank of India	11619
9.	Vijaya Bank	1189
Total		161912

The upper limit of investment under the Senior Citizen Savings Scheme, 2004 (SCSS) is: (i) rupees 15 lakh for those having attained the age of 60 years, (ii) the total amount of retirement benefits for those not having attained the age of 60 but retired on superannuation or otherwise as per the rules of the schemes. The rate of interest for SCSS, 2004 for the quarter 01.10.2016 to 31.12.2016 is 8.5%. The deposits made in the scheme are exempted from income tax under section 80C of Income Tax Act, 1961. However, the interest earned on the deposit is not exempted from income tax. Provisions of Tax Deduction at Source (TDS) are applicable to the Scheme.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

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DSM/KA

Tax treatment of Senior Citizens Savings Scheme: deposits eligible for income-tax deduction, interest taxable and TDS applies. 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.