SENIOR CITIZEN

Pension will be taxable if earlier amount of contribution has been deducted u/s 80ccc 

If deduction is claimed u/s 80ccc, pension will be tyaxaxble in the hands of assessee or the nominee in the year of receipt

Interest on Senior Citizen Savings Scheme, 2004 (i.e.SCSS, 2004) (Notified Scheme of Post Office) is taxable under the head “Income from Other Sources”. If interest exceeds Rs.10000/- in a year, it is subject to TDS also u/s.194A.

HI..

You need to tax such interest every year on accrual basis. What i believe is there is no system of pension in SCSS account. You get Higer interest than normal deposits(as it is for Senior citizens) + rest all are same like fixed deposits.

Regards

The Scheme of SCSS, 2004 is for individuals of 60 years of age or above on the date of opening of an account. Minimum Rs.1000/- and Maximum Rs.1500000/- can be invested in overall. Rate of interest is 9% p.a. payable quarterly on 31^st March, 30^th June, 30^th September and 31^st December. The Scheme is for 5 years and extendable by another 3 years. From Asstt Year 2008-09, deposit in the said account is eligible for deduction u/s.80C upto an amount of Rs.100000/-.