 MBA 6 / SCSS  Prashant S Sawant

SCSS  Senior citizen savings scheme  Do not regret growing older. It’s a privilege denied to many.  Aug 2004, GOI introduced as a FD that gave senior citizens assured returns at regular intervals.  Invest lump sum & get earn interest on quarterly basis.  At the end of 5 yrs, the original investment is returned back.

SCSS contd…  Eligible  Any resident indian citizen who is 6o yrs old & older  Age Yrs, VRS  Similar to POMIS  Why separate scheme ?

SCSS Concept  Salary from the post retirement funds  POMIS has _______ interest payout.  Monthly  SCSS has ________ interest payout.  Quarterly  31 mar, 30 jun, 30 sept, 31 dec  ROI , 9.3% pa

SCSS Contd….  Maturity period is 5 yrs.  Can be extended by another 3 yrs.  Can withdraw after 5 yrs or can apply for extension ( in a prescribed form)  No penalty after 1 yr of extension period  Maximum limit Rs 15 Lakhs  Penalty 1.5% ( Between 1 st & 2 nd yr)  Penalty 1% ( After 2 yrs)

How to invest ?  Apply at PO  Apply at any PSB that offers PPF scheme.  Age limit ?  60 Yrs +  yrs ( VRS)  Retired from defense, relaxation is age possible.  Min investment Rs 1000/- & slabs of Rs 1000/- thereof.  Rs 25,500 /- ???  Max limit ?  Rs 15 Lakhs

How to invest ? Contd…  Can open single ac  Can open joint ac with your spouse ( age of only the first applicant is considered, no age bar for second applicant ).  Sum of all investments should not exceed Rs 15 Lakhs.  Investment < 1 L can be made in cash.  More than that cheque/DD reqd.  Nomination is allowed at the opening of the ac or any time during the tenure.  Can transfer the ac in case of change of residence.

Points to consider before investing  Do you want a regular stream of income?  Can you lock your investment ?  How to balance the need of regular income & growth of capital ?  How periodic you want income ?

Advantages  Offers highest ROI than any other govt scheme.  100% safe because ____  Guaranteed by GOI.  Max limit Rs _____  Rs 15 L  Interest payout every _____  Quarter  Investment can be done at ______  PDs & PSBs  Penalty for premature withdrawal ?  1.5% ( 1-2 yrs) & 1% after 2 yrs  Joint ac, nomination & account transfer possible.

Dis-advantages  TDS applicable  For no TDS …..submit ?  Form 15G ( Non-senior citizens)  Form 15H ( Senior citizens)

Investment meter  Safety  *****  Liquidity  ***  Returns  ***

Tax impact  80C  TDS if interest exceeds RS 10000/- py  Can claim exemption by submitting ???

SCSS in nutshell  Amount invested : Rs 3,00,000  Receives Rs 6975/- _____ for 5 yrs (Q)  Total amount earned = __________( 9.3% ROI)  / /- = /-  Eligibility : Any indian resident aged 60 yrs & above &???  Taxation : interest as per slab ( TDS for >10k py int)  Tax rebate : ?  80C  Min investment : ?  Rs 1k  Max investment : Rs 15L  Penalty of ___% if ac closed betn 1 & 2 yrs & ___ after 2 yrs.  1.5% & 1%

 Thank you.  Prashant Sawant   Global training group