Latest news with #Section80C
News18
5 hours ago
- Business
- News18
Post Office Senior Citizen Savings Scheme: Invest Once, Get Guaranteed Rs 20,000 Every Month
Last Updated: A lump sum investment of Rs 30 lakh in SCSS gives an annual return of approximately Rs 2.46 lakh, which translates to around Rs 20,500 per month The post office near your home is not just a place to send letters, it also offers safe and reliable investment options. One such scheme is the Senior Citizen Savings Scheme (SCSS), which is backed by a government guarantee. This scheme offers an attractive interest rate of 8.2% per annum, making it a better option than most bank fixed deposits. SCSS is especially beneficial for retirees looking for regular monthly income. You can start investing in SCSS with just Rs 1,000, and the maximum investment limit is Rs 30 lakh. An added advantage is tax savings under Section 80C, offering deductions of up to Rs 1.5 lakh annually. Any individual aged 60 years or above can invest in SCSS. Civil employees who have taken voluntary retirement between 55 to 60 years, and retired defence personnel between 50 to 60 years, are also eligible. A joint account can be opened with a spouse. The scheme runs for five years, with the option to extend it for another three years. However, if the account is closed within one year, no interest is paid. If closed between two and five years, the interest amount is reduced by 1% as a penalty. A slightly higher penalty applies for closure before two years. For example, if someone invests Rs 20 lakh, the maturity amount in five years at 8.2% interest will be Rs 28.2 lakh. This includes a quarterly interest payout of about Rs 41,000, totalling Rs 8.2 lakh in five years. It provides a monthly income of roughly Rs 13,666. SCSS stands out as a secure and stable financial plan for senior citizens. It not only offers excellent returns and tax benefits but also comes with the trust of a government guarantee. For those looking to secure a steady income post-retirement, this scheme is a dependable choice. Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
a day ago
- Business
- News18
SCSS Explained: 8.2% Interest, Tax Savings, And Guaranteed Income For Senior Citizens
SCSS not only provides safety but also offers a regular income to retirees. Senior citizens often look for safe and steady income options. At a time when fixed deposit rates are fluctuating and many investment options offer lower returns, one scheme stands strong – the Senior Citizen Savings Scheme (SCSS). SCSS not only provides safety but also offers a regular income to retirees. It gives an impressive 8.2 per cent per annum interest. Senior citizens can also get a tax benefit under Section 80C up to Rs 1.5 lakh. What is SCSS? The Senior Citizen Savings Scheme is a government-backed savings plan designed specifically for people aged 60 years and above. The scheme is available at post offices and authorised banks. The interest rate is paid every quarter. The minimum amount you need to deposit is Rs 1,000, and the maximum is Rs 30 lakh. When the total amount is less than Rs 1 lakh, an individual may deposit the money in cash. When the deposit exceeds Rs 1 lakh, the person should pay using a cheque. Repayment Tenure The repayment tenure for SCSS is 5 years. But if you want to close it prematurely, you can do so by filling Form 2. But you cannot withdraw multiple times; only one-time full withdrawal is allowed. If you want to close the account before 1 year, then you will have to return all the interest you earned. And if you close the account after 1 year but before two years, then a penalty of 1.5 per cent will be imposed on your deposit amount. If you are willing to close the account after 2 years, then a penalty of 1 per cent will be deducted from your deposit. How to open SCSS account? Go to any post office or authorised bank branch. Fill Form A, which is the SCSS account opening form. Enter personal details such as name, date of birth, address, deposit amount and nominee details. Submit the required documents such as Aadhaar Card, PAN card, passport, passport size photo and retirement proof. Deposit the amount in cash if the amount is less than Rs 1 lakh or by cheque or demand draft for above Rs 1 lakh. Once the verification is done, the account will be opened. You will get a passbook or account confirmation. You can also open a joint account with your spouse but the primary account holder must be a senior citizen. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
a day ago
- Business
- Time of India
ELSS funds: Go-to scheme for tax saving loses traction as new tax regime picks favour; Rs 1,600 crore outflows in Q1 FY26
Once a go-to choice for tax-saving investments, equity-linked savings schemes (ELSS) are slowly slipping off investors' radar. More taxpayers are pulling out of the ELSS as they are switching to a new tax regime, which provides no tax benefits under section 80C, according to an ET report. Data for the first quarter of FY26 reveals net outflows of Rs 1,616 crore from ELSS funds, indicating a drying up of fresh inflows and increasing withdrawals from investors whose three-year mandatory lock-in period has ended. Over the past 12 months, ELSS schemes managed a modest net inflow of Rs 535 crore, against the Rs 56,309 crore that poured into the flexicap category during the same period. "Many taxpayers have switched or are switching to the new tax regime, which is now very much attractive," Gautam Nayak, partner at CNK and Associates was quoted as saying. "Since there are no tax benefits available under Section 80C, these investors would not want to invest in ELSS schemes and lock in their investments for 3 years." Why did people prefer ELSS earlier? Traditionally, ELSS was favoured for offering a shorter lock-in compared to other tax-saving products like Public Provident Fund (PPF), National Savings Certificates (NSC), and five-year tax-saving fixed deposits. Being equity-oriented, it also offered superior returns. Under the old tax regime, investors could invest up to Rs 1.5 lakh annually in ELSS and claim deductions under Section 80C. But the appeal seems to be fading over time. Since the past year, ELSS has registered the slowest growth among equity funds, with assets under management (AUM) rising just 6.9%, from Rs 2.33 lakh crore to Rs 2.49 lakh crore. In contrast, total equity scheme AUM grew by nearly 22%, from Rs 26.82 lakh crore to Rs 32.69 lakh crore. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
a day ago
- Business
- Mint
Mirae Asset ELSS Tax Saver Fund: Strong 5-year CAGR of 18.70% — Should you bet on it?
The Mirae Asset ELSS Tax Saver Fund is a popular investment option among investors aspiring to save tax and create wealth on a long term basis. This Equity Linked Savings Scheme (ELSS) comes with a three-year lock-in period and Section 80C benefits of up to ₹ 1.5 lakh annually. Vaibhav Shah, Head – Products, Business Strategy & International Business, Mirae Asset Investment Managers (India), says, "For individuals filing taxes under the old regime, investing in ELSS (Equity Linked Savings Scheme) funds can offer tax savings of up to ₹ 46,800 per year on investments up to ₹ 1.5 lakh, depending on their tax slab.' He further added, 'Beyond tax benefits, ELSS funds also encourage disciplined investing due to their mandatory 3-year lock-in period, which helps investors avoid impulsive decisions during market fluctuations. Thus, for long-term investments, ELSS makes much more sense." As of July 2025, the Mirae Asset ELSS Tax Saver Fund (Direct-Growth) has delivered strong and consistent returns timeframes, making it a reliable performer in the ELSS category. It has showcased good performance over the years and looks primed to continue on the same trajectory. Period Return (% CAGR) 1 year 21.06% 3 years 17.48% 5 years 18.72% Since inception 17.83% Note: The returns discussed above are illustrative in nature. For complete details of the fund and its performance refer to the website of Mirae Asset. It is important to note that the 5-year CAGR of 18.72% stands out, outperforming many peer ELSS fund schemes. Furthermore, despite market fluctuations due to the ongoing geo-political issues due to the tariffs and wars i.e., Russia-Ukraine war and other disputes the fund has continued to deliver resilient growth potential. Investments done in this fund qualify for tax deductions under Section 80C of the Income Tax Act. This deduction is permitted up to ₹ 1.5 lakh annually. It also has the shortest lock in period among tax saving instruments, just 3 years. Further, this lock-in is implemented on such funds to allow them to compound wealth, as it is common knowledge that wealth in equity markets is only made on compounding. This makes this ELSS scheme tax efficient along with being relatively liquid in comparison with other tax saving schemes such as NSC and PPF. The fund focuses on maintaining a well balanced portfolio spread across large-cap, mid-cap and small-cap stocks. The top sectoral allocations include financials, consumer goods, technology and chemicals. This diversification permits in reducing risk while capturing opportunities across different market capitalisations and sectors. This is another extremely crucial metric associated with this fund, it is the expense ratio. For direct plans, the expense ratio is just 0.56%, one of the lowest in the entire ELSS category. This simply means more of your invested money works towards creation of wealth and generating returns instead of being eroded by fund management fees and charges. Hence, as a general rule you should invest in only those funds that have low expense ratios. Given the lock-in period and equity exposure, this fund is appropriate for investors who have a long term vision. The holding period preferably should be 5 years or more. If you stay invested beyond the 3-year lock-in period then the compounding benefits can significantly boost your overall corpus. Hence, the Mirae Asset ELSS Tax Saver Fund provides a mix of tax saving, disciplined investing, and strong long term returns. Still, as it is an equity oriented investment product, investors should be completely aware of and prepared for short term volatility. That is why you should always align such investments with your financial goals, long term targets and risk taking appetite. Disclaimer: Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully before investing.
Economic Times
2 days ago
- Business
- Economic Times
Is ELSS losing its appeal in the new tax regime?
Getty Images The equity scheme assets grew by nearly 22% from ₹26.82 lakh crore to ₹32.69 lakh crore in this period. Mumbai: Is it the beginning of a slow death for equity-linked savings scheme (ELSS), the once-popular tax-saving offering by mutual funds? With several investors shifting to the new tax regime, the demand for this equity scheme category is dwindling as fresh money is drying up, while old-timers are pulling money out after the three-year mandatory lock-in. ELSS has seen net outflows of ₹1,616 crore in the first quarter FY26. Over the last 12 months, the ELSS category has seen net inflows of ₹535 crore, compared to flows into the flexicap category worth ₹56,309 crore. "Many taxpayers have switched or are switching to the new tax regime, which is now very much attractive," says Gautam Nayak, partner, CNK and Associates. "Since there are no tax benefits available under Section 80C, these investors would not want to invest in ELSS schemes and lock in their investments for 3 years." ELSS was a popular category for individuals as it had the lowest lock-in period compared to comparable tax-saving options such as public provident fund (PPF), national savings certificates (NSC) and five-year tax-saving fixed deposits, among others. Moreover, its returns have been superior because it's an equity-oriented product. Investors could park up to ₹1.5 lakh in a financial year and get tax savings under Section 80C of the Income Tax Act in the old tax regime. However, in the new tax regime, this benefit is not the last year, the ELSS category has seen the slowest growth, with assets under management moving up from ₹2.33 lakh crore to ₹2.49 lakh crore-a rise of 6.9%. The equity scheme assets grew by nearly 22% from ₹26.82 lakh crore to ₹32.69 lakh crore in this period.
