mba 6 / scss prashant s sawant. scss senior citizen savings scheme do not regret growing older....

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 55-60 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 2012-13, 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 1st & 2nd yr) Penalty 1% ( After 2 yrs)

How to invest ?

Apply at PO Apply at any PSB that offers PPF scheme. Age limit ? 60 Yrs + 55-60 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) 139500/- + 300000 /- = 439500/- 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 9820408795 Global training group