For senior citizens who have retired between February and April 2020, the government amid Covid 19 outbreak has relaxed the timeline for investing in senior Citizen Scheme account until June 30, 2020.
In accordance with the rules, a retired individual of 55-60 years of age can invest in the SCSS scheme in a case if the investment is made within one month of receiving retirement benefits and the amount is not in excess of the retirement benefits.
The finance ministry circular dated May 26, 2020 has allowed for investment until June 30, 2020 in the SCSS and the decision has been taken in the interest of small savings scheme account as lockdown prevailed on account of Covid 19. "Individual retired (within the age bracket 55-60 years) on superannuation or otherwise and got retirement benefits in February-2020, March-2020 and April 2020 are eligible to open SCSS account up to 30th June, 2020. Personnel from Defence services retired and got retirement benefits in February-2020, March-2020 and April-2020 are also eligible to open SCSS account up to 30 June, 2020 under the prescribed eligibility conditions applicable to them", said the circular.
What is a Senior Citizen Savings Scheme account?
This is a government of India backed scheme chiefly for retirees and senior citizens. In the scheme, a maximum of Rs. 15 lakhs can be invested. And in a current low regime, is one of the two schemes offering above 7% interest rate of 7.4%. Also, the investment in the scheme is allowed for deduction under section 80C.
Under the scheme 60 years aged individuals or people aged
55 years or more but less than 60 years who retires on superannuation or under voluntary retirement scheme are also eligible to open an account subject to the condition that the scheme account is opened within one month of receipt of retirement benefits and the amount should not exceed the amount of retirement benefits.
Similarly, retired personnel of Defence Services (excluding Civilian Defence employees) are also eligible for opening SCSS upon attaining the age of 50 years subject to fulfilment of other specified conditions.