Budget 2023 Saving Schemes Highlights

February 16, 2023

BUDGET HIGHLIGHTS 2023

 

SAVINGS SCHEMES:-

  1. Senior Citizens Saving Scheme (SCSS) deposit limit raised from Rs.15 lakhs to 30 lakhs.

    *Who is Senior Citizen ?

An individual who attains the age of 60 years or above on the date of account opening.

   *What is senior citizens saving scheme?

Open an SCSS account by depositing a minimum amount of Rs.1000 up to 30 lakh in a single instalment. The deposit amount is restricted to the retirement benefits received and must be deposited in the account within a month from the date of receiving the retirement benefits from the employer.

  *What are the benefits of senior citizen saving scheme?

The Principal amount invested in SCSS account upto maximum limit of Rs. 1.5 lakhs in a financial year is eligible for tax exemption under section 80C of the Income Tax Act. The interest earned on the deposited amount under SCSS is taxable as per the applicable tax slab to the person

  *How many Accounts can be opened under SCSS by a senior citizen?

You can make the deposit to the account in a single payment. Therefore, an account holder may operate more than one account under the scheme subject to the condition that the deposits in all the accounts taken together shall not exceed the maximum limit, i.e. Rs. 30 lacs. Also we shall not open in the same deposit branch during a Calendar Year.

  *What is the current Interest rate for SCSS?

The current interest rate applicable to SCSS is 8% p.a. This interest rate is applicable from 1st January 2023 until 31st March 2023.

 

  1. Post Office Monthly Income Scheme limit increased from Rs. 4.5 lakhs to 9 lakhs for single account & from Rs.9 lakhs to 15 lakhs for joint account.

   *What is the interest rate?

Interest rate is 7.1% from 1st January 2023 to 31st march 2023.

   *How is the individual account holder’s share calculated in the case of a joint account?

Each joint account holder will have an equal share in each joint account.

   *What if I don’t want to withdraw the deposit amount upon the account maturity?

In case you don’t withdraw the deposit amount upon maturity, the money will stay in the account and earn a simple interest as per the Post Office Savings Account for a period of two years from the account maturity. 

     *Is this scheme suitable for senior citizens?

Yes, this is a favourable scheme for senior citizens as they can deposit their life savings in the account and earn interest for their monthly expenses.

     *What happens to my account if I have to move from one city to another due to work?

In the event of shifting my account from one city to another we can change without any extra charges.

   *What is the POMIS investment limit in 2023?

The maximum deposit limit under POMIS is 9 lakhs for an individual account and 15 lakhs for a joint account. 

 

  1. Mahila Samman Savings Certificate for one time available for 2 years upto march 2025. This will offer deposit facility upto Rs.2 lakhs for tenure of 2 years @ 7.5% interest rate with partial withdrawal allowed.

*Scheme doesn’t have any specific tax relief, but partial withdrawal is allowed. 



Note: Above details are meant for generalized situations and shall not be used as a legal basis for any particular situation readers may have. We do provide tax consultations for specific scenarios and can be reached through our contact us form.



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