Senior citizen saving scheme (SCSS) is best interest paying scheme for eligible senior citizens - 60 years.
Investment in this scheme is also eligible for deduction under the income tax (IT) act section 80C. Interest in this scheme is 9.3% per annum,which is quarterly compounding.
** 11. Whether TDS (Tax Deduct at Source) on interest payments will be applicable with retrospective effect or prospective basis?
TDS is applicable from the very first day when SCSS, 2004 was made operational regardless of the fact that the Central Government or / Reserve Bank of India (RBI) or any authority might have issued any Notification / circular / clarification at a later stage.
(GOI letter F. No.2/8/2004/NS-II dated June 06, 2006)
** 12. Whether only one person or / number of persons can be nominated in the accounts opened under the Scheme?
The depositor may, at the time of opening of the account, nominate a person or persons who, in the event of death of the depositor, will be entitled to payment due on the account. [Rule 6 (1)]
** 13. Can a nomination be made after the account has already been opened?
Yes, nomination may be made by the depositor at any time after opening of the account but before its closure, by an application in Form C accompanied by the Pass book to the deposit office. [Rule 6 (2)]
** 14. Can a nomination be cancelled or / changed?
Yes, the nomination made by the depositor may be cancelled or / varied by submitting a fresh nomination in Form C to the deposit office where the account is being maintained. [Rule 6 (3)]
** 15. Can nomination be made in joint account also?
Nomination can be made in joint account also. In such a case, the joint holder will be the first person entitled to receive the amount payable in the event of death of the depositor. The nominee’s claim will arise only after the death of both the joint holders. [Rule 6 (4)]
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