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Post Office Senior Citizen Savings Scheme (SCSS)

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Ram

Engineer

98 Points Posted on 01 January 2023

My Senior Citizen Savings Scheme (SCSS) deposit (Rs. 1.5 lacs) with the Post Office, which is opened 5 years ago, is maturing on 5 Jan 2023.
I have an option to:

(1) renew this deposit for another 3 years

(2) close the deposit and get the amount credited to my post office savings account.

As the SCSS deposit is eligible for 80C deduction, can I avail of the deduction on the renewed deposit, for the current AY 2022-23, because this is tantamount to opening a fresh deposit for the AY 2022-23?

What about if I choose the second option and open a fresh new deposit with the maturity amount (of Rs. 1.5 lacs)?

Appreciate experts’ guidance.

Replies (4)

Quick Summary

This discussion addresses a Post Office Senior Citizen Savings Scheme (SCSS) deposit maturing after 5 years. The user is seeking advice on whether renewing the deposit or opening a new one allows for claiming the Section 80C tax deduction for the current financial year. Experts confirm that the 80C deduction is applicable upon renewal, but for the subsequent financial year (AY 2023-24), not the current one (AY 2022-23).