Latest news with #SeniorCitizens'SavingsScheme
News18
18-05-2025
- Business
- News18
Want To Support Your Retired Mother? SCSS Lets You Gift Rs 30 Lakh Without Any Tax
Last Updated: SCSS: Any gift from a son or daughter to their senior citizen mother for investment in SCSS is tax-free under Section 56 of the Income Tax Act. SCSS: A Win-Win for Tax Saving and Retirement Planning SCSS: Planning to secure your mother's retirement while looking for an option to save taxes as well. You can gift your senior citizen mother up to Rs. 30 lakhs for investment in the Senior Citizens' Savings Scheme (SCSS) FDR. This regular interest income helps her stay self-reliant in her old age. CA Kinjal Shah, Secretary BCAS has decoded SCSS scheme and its tax implications. Senior Citizens' Savings Scheme (SCSS) – Key Highlights SCSS is a government-backed fixed deposit scheme offering assured returns for senior citizens. Eligibility: – Individuals aged 60 years and above. – Individuals aged 55-60 years who have retired under Superannuation, VRS, or Special VRS. – Retired Defence Services personnel aged 50 years and above (excluding civilian employees). The account can be opened individually or jointly with a spouse. You can deposit a minimum of Rs 1,000 and a maximum of Rs 30 lakhs, in multiples of Rs 1,000. The tenure is 5 years from the date of account opening. The account can be extended for an additional 3 years after maturity. Interest is payable quarterly on the first working day of April, July, October, and January. Interest does not accrue further if it is not claimed. The account can be closed prematurely after one year, subject to specific conditions. Investment Deduction (Section 80C): Deduction up to ₹1.50 lakhs is available in the year of investment. Interest Income: The interest income is taxable. Interest Deduction (Section 80TTB): Deduction up to ₹50,000 can be claimed on the total interest earned from deposits in banks, post offices, etc., including SCSS. Tax Implications Under SCSS Any gift from a son or daughter to their senior citizen mother for investment in SCSS is tax-free under Section 56 of the Income Tax Act. How to Open an Account SCSS accounts can be opened at public and private sector banks or post offices. To open an account, fill out the application form and submit your PAN card, address proof, and passport-size photographs. Deposits below ₹1 lakh can be made in cash, while amounts above ₹1 lakh must be made by cheque. Upon successful submission, an SCSS account will be opened, and a passbook will be provided. First Published: May 18, 2025, 11:18 IST
Economic Times
11-05-2025
- Business
- Economic Times
5 financial gifts for a Happy Mother's Day -- take a look!
This Mother's Day, go beyond traditional gifts and take a meaningful step toward ensuring your mother's financial freedom. Start by helping her build a secure and diversified financial portfolio tailored to her needs whether it's through steady income schemes like the Senior Citizens' Savings Scheme or wealth-building options such as mutual funds with a portion of gold to hedge her risks. Tired of too many ads? Remove Ads 1) Mutual Funds investment 2) Gold ETFs and Gold mutual funds Tired of too many ads? Remove Ads 3) Senior Citizens' Savings Scheme (SCSS) 4) Sukanya Samridhhi Yojana 5) Insurance cover This Mother's Day, go beyond traditional gifts and take a meaningful step toward ensuring your mother's financial freedom. Start by helping her build a secure and diversified financial portfolio tailored to her needs—whether it's through steady income schemes like the Senior Citizens' Savings Scheme or wealth-building options such as mutual funds with a portion of gold to hedge her digital financial literacy by teaching her how to manage accounts and payments via mobile apps, giving her independence and control. By combining smart investments with empowerment, you're not just gifting money—you're giving her confidence, dignity, and the ability to make financial decisions on her own funds make for a thoughtful and future-focused gift for your mother. Mutual funds are easy and effective instrument and act as a wealth multiplier. Mutual funds investments can be in equity, debt and hybrid mode. Through mutual funds, one can take exposure to equities. The funds are professionally managed and investments could be made lump sum or via systematic investment plan (SIP).One must choose funds from reputed asset management companies with a solid track has been the best asset class this year and is the hedge against uncertainty. Gold mutual funds and ETFs are fast gaining prominence among your mother is 60 years or older, consider gifting her a Senior Citizens' Savings Scheme. The scheme offers 8.2% per annum interest payable from the date of deposit to 31st March/30th Sept/31st December in the first instance and thereafter, interest is payable on 1st April, 1st July, 1st October and 1st shall be only one deposit in the account in multiple of Rs 1000 with maximum investment not exceeding Rs 30 a young mother, this savings scheme is an effective instrument to create wealth over a long period. The investment comes without risk. Currently, the rate of interest is 8.2% per annum,calculated on a yearly basis. A minimum investment of Rs 250 and a maximum of 1,50,000/- in a financial year can be made. Subsequent deposits in multiples of Rs 50 can be made in lump-sum. It also offers tax benefits under the older tax spiralling health inflation, you can offer your mother the biggest gift of health cover. There are plenty of options available in the market now. Many private insurers offer specifically curated plans for senior citizens, with features like pre-existing diseases coverage. They also offer benefits like ambulance cover, room rent restrictions, and coverage for chronic diseases are often included.
Time of India
11-05-2025
- Business
- Time of India
5 financial gifts for a Happy Mother's Day -- take a look!
This Mother's Day, go beyond traditional gifts and take a meaningful step toward ensuring your mother's financial freedom. Start by helping her build a secure and diversified financial portfolio tailored to her needs—whether it's through steady income schemes like the Senior Citizens' Savings Scheme or wealth-building options such as mutual funds with a portion of gold to hedge her risks. Encourage digital financial literacy by teaching her how to manage accounts and payments via mobile apps, giving her independence and control. By combining smart investments with empowerment, you're not just gifting money—you're giving her confidence, dignity, and the ability to make financial decisions on her own terms. 1) Mutual Funds investment Mutual funds make for a thoughtful and future-focused gift for your mother. Mutual funds are easy and effective instrument and act as a wealth multiplier. Mutual funds investments can be in equity, debt and hybrid mode. Through mutual funds, one can take exposure to equities. The funds are professionally managed and investments could be made lump sum or via systematic investment plan (SIP). One must choose funds from reputed asset management companies with a solid track record. 2) Gold ETFs and Gold mutual funds Gold has been the best asset class this year and is the hedge against uncertainty. Gold mutual funds and ETFs are fast gaining prominence among investors. Live Events 3) Senior Citizens' Savings Scheme (SCSS) If your mother is 60 years or older, consider gifting her a Senior Citizens' Savings Scheme. The scheme offers 8.2% per annum interest payable from the date of deposit to 31st March/30th Sept/31st December in the first instance and thereafter, interest is payable on 1st April, 1st July, 1st October and 1st January. There shall be only one deposit in the account in multiple of Rs 1000 with maximum investment not exceeding Rs 30 lakh. 4) Sukanya Samridhhi Yojana For a young mother, this savings scheme is an effective instrument to create wealth over a long period. The investment comes without risk. Currently, the rate of interest is 8.2% per annum,calculated on a yearly basis. A minimum investment of Rs 250 and a maximum of 1,50,000/- in a financial year can be made. Subsequent deposits in multiples of Rs 50 can be made in lump-sum. It also offers tax benefits under the older tax regime. 5) Insurance cover Amid spiralling health inflation, you can offer your mother the biggest gift of health cover. There are plenty of options available in the market now. Many private insurers offer specifically curated plans for senior citizens, with features like pre-existing diseases coverage. They also offer benefits like ambulance cover, room rent restrictions, and coverage for chronic diseases are often included.
New Indian Express
05-05-2025
- Business
- New Indian Express
Income-Expenditure Gap in Retirement
Whether there will be an income-expenditure gap in retirement depends on several factors, including your current income, lifestyle, savings, investments, inflation, and post-retirement expenses. This gap is a concern due to rising life expectancy, increasing healthcare costs, and no social security. When you are about 10 years away from retirement ask yourself these questions: - How much is your monthly expenses on electricity, society charges, food, travel, fuel, salaries to cook, servants, driver, etc., - How much do you really spend on buying food, eating out, etc. - Expenses on special occasions -marriage of siblings, children of siblings, other events, festivals, etc. - Vacations and other annual expenses – insurance, etc. Income Sources in Retirement: Pension : Limited to government or organised sector employees Investments : Returns from fixed deposits, mutual funds, dividends, or rental income. Savings : Withdrawals from savings accounts, PPF, NPS. Other : Part-time work, family support, or annuity plans. Most Indians rely on personal savings or family support. Expenditure in Retirement: Regular Expenses : Food, utilities, rent/housing maintenance. Healthcare : Costs rise with age (e.g., medicines, hospitalisation, insurance). Lifestyle : Travel, hobbies, or supporting family. Inflation: In India, inflation averages 5-7% annually, eroding purchasing power over 20 years of retirement. The Gap: If your post-retirement income (pension + investment returns) is less than your expenses, a gap emerges. Example: A retiree with a monthly expense of ₹50,000 but only ₹30,000 from pension and investments faces a ₹20,000 monthly gap. Factors like medical emergencies or unexpected expenses (e.g., home repairs) widen this gap. How to fill the Income-Expenditure gap To bridge this gap, you need a combination of savings, investments, and income-generating strategies. First of course, retire as late as possible. If you retire at 65 years instead of retiring at 60, it means you will need say 25x your expenses instead of 35 years if you retire at 60. Build a Retirement Corpus: Estimate Needs : Assume you need ₹50,000/month (in today's value) for 35 years post-retirement at age 60, with 6% inflation. Using the 4% safe withdrawal rule, you'd need a corpus of about ₹3 crore. Start Early : Invest in long-term instruments like Equity Mutual Funds or NPS for higher returns. Rental Income : Invest in real estate for steady rental yields. Dividend Stocks/Mutual Funds: Invest in high-dividend stocks or mutual funds. Optimise for Inflation and Taxes: Equity Investments : Allocate 50-60% of your portfolio to equity mutual funds or stocks for inflation-beating returns Tax-Free Instruments: Use Senior Citizens' Savings Scheme (SCSS) or tax-free bonds for stable, tax-efficient income. Manage Healthcare Costs: Health Insurance : Buy a comprehensive health plan early to cover hospitalisation and critical illnesses. Emergency Fund : Keep 6-12 months' expenses in a liquid fund or fixed deposit for emergencies. Part-time Work : Leverage skills for consulting, freelancing, or teaching. Reverse Mortgage : If you own a house, use a reverse mortgage scheme to get monthly payments while retaining ownership. Downsize Lifestyle : Move to a smaller home or Tier-2 city to reduce costs. Budgeting: Use the 50-30-20 rule (50% needs, 30% wants, 20% savings) even in retirement to manage cash flow. Family support: Many retirees depend on children, but this is less reliable with nuclear families and rising costs.
