For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Budget 2020: SBI Research Expects Full Rebate On SCSS

|

In its report, SBI Research has suggested the government to provide complete tax relief on SCSS in its Budget 2020. In its latest Ecowrap report, SBI Research says, . "Government has an excellent scheme for senior citizens. Under the Senior Citizens Savings Scheme (SCSS), a senior citizen can deposit Rs 15 lakh and the current interest rate is 8.6%. However, the interest on SCSS is fully taxable which is a major drawback of this scheme (the interest amount for Rs 1 lakh deposit for 5 years is around Rs 51,000 which is taxable)".

Budget 2020: SBI Research Expects Full Rebate On SCSS
 

"The Mar'18 outstanding under SCSS was Rs 38,662 crore. It will be fair if such amount is given full tax rebate as the revenue foregone by the Government could be only Rs 3092 crores, that will have the minimal impact on Government fiscal deficit," it added.

The SCSS account is for senior citizens aged 60 years and above. Also those of whom who have retired on super annuation or taken VRS scheme at 55 years of age or more but less than 60 years.

The account comes with 5 years maturity and can be extended for 3 more years after maturity. Currently, Rs 15 lakh deposit in an SCSS account can earn approx Rs 6,45,000 interest in five years. The interest is paid every quarter to the account holder.

Also, on the sidelines, the government has made several other recommendations such as an increase in PPF limit to Rs. 2.5 lakh, increase in home loan interest deduction to Rs. 3 lakh as well as rejig in tax slab rs 5-10 lakh and more than Rs 10 lakh.

GoodReturns.in

Story first published: Saturday, January 18, 2020, 16:30 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more