Retirement
SCSS Calculator
Senior Citizen Savings Scheme — 8.2% government-backed rate (highest among small savings), quarterly interest payout, 5-year tenure, 80C eligible. The retirement income workhorse.
Inputs
Q1 FY 2026-27 · Quarterly payout · 5-year tenure (extendable by 3) · Senior citizens 60+ only
SCSS rules
Eligibility
- • Age 60 or above
- • Or 55+ if retired with VRS/superannuation (within 3 months of retirement)
- • Defence personnel: 50+ (with retirement benefits)
Limits & terms
- • Min: ₹1,000 · Max: ₹30 lakh per individual
- • Tenure: 5 years, extendable by 3 more years
- • Premature withdrawal: Allowed after 1 year (1.5–2% penalty)
- • Multiple accounts: Allowed but combined limit ₹30L
Tax (updated Budget 2025)
- • Deposit: Eligible u/s 80C (₹1.5L cap, old regime)
- • Interest: Fully taxable as per slab
- • TDS threshold: 10% TDS only if interest exceeds ₹1,00,000/year (doubled from ₹50K in Budget 2025, effective FY 2025-26)
- • 80TTB: First ₹50,000 interest tax-FREE for seniors (any bank/post office)
- • Form 15H: Skip TDS entirely if total income below taxable limit
- • Form 12BBA (75+ only): If only pension + interest from same bank, submit Form 12BBA → bank handles TDS + you skip filing ITR (Section 194P)
Budget 2025 win for seniors
At 8.2% rate, ₹12.2 lakh deposit generates exactly ₹1 lakh annual interest — the new TDS threshold. So deposits up to ₹12.2L = zero TDS hassle. Higher amounts: 10% TDS but you can claim back via ITR if total income is below taxable limit.
FAQs
What is SCSS interest rate 2026?
8.2% per annum (Q1 FY 2026-27), paid quarterly. One of the highest rates among government-backed schemes.
Who can open SCSS?
Senior citizens 60+. Also 55–59 if retired with VRS/superannuation (within 3 months of retirement). Defence: 50+. NRIs and HUFs not allowed.
What is the maximum SCSS deposit?
₹30 lakh per individual (combined across all SCSS accounts). Min ₹1,000. Multiple accounts allowed but combined limit.
What is SCSS TDS limit 2026 — latest rule?
Budget 2025 DOUBLED the TDS threshold for senior citizens from ₹50,000 to ₹1,00,000 per financial year under Section 194A (effective FY 2025-26). So: SCSS interest up to ₹1 lakh/year = NO TDS. Above ₹1L = 10% TDS automatically. Submit Form 15H at the post office if your total taxable income is below the basic exemption limit — TDS skipped even if interest crosses ₹1L.
What is Form 12BBA — and do I need to file ITR?
If you are 75 years or older and your ONLY income is pension + interest from the SAME specified bank/post office, you can submit Form 12BBA to the bank (Section 194P, introduced FY 2021-22). The bank then calculates your tax (including 80TTB ₹50K interest exemption + 87A rebate) and deducts TDS accordingly — you do NOT need to file ITR separately. Form 12BBA covers both old and new regimes. For old regime, you submit deduction proofs to the bank; new regime needs no proof.
Is SCSS deposit eligible for 80C?
Yes. SCSS deposit qualifies for 80C deduction up to ₹1.5 lakh per year (old regime only). The interest is NOT 80C-eligible — only the principal contribution counts.
SCSS interest payment — when do I get money?
Quarterly: 1 April, 1 July, 1 October, 1 January. Interest is automatically credited to the linked savings account at the post office or bank where you hold the SCSS account.
Can I extend SCSS after 5 years?
Yes — extension allowed for additional 3 years (one-time). Submit Form B at the post office within 1 year after maturity. Extended account earns rate prevailing at the time of extension (locked for those 3 years).