Senior Citizen Saving Scheme (SCSS) 5 year FD Rs 1.5 lakh can claim under 80c only for the 1st year?

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herbsandchilli Trading

81 Points Joined February 2018

For FY2019-20 my extimated income will be Rs 7 lakhs. (senior citizen)

1)If I open a SCSS 5 yr FD scheme before march 31st 2020 , I can claim the full Rs1.5 lakhs under 80c for AY20-21 right ? Then the next 4 years can not claim any 80c deductions on that deposit right ? only bank will show interest accrued or will credit to my SB quarterly?

2) I can also claim Rs 50000 under 80TTB on the FD/SB interest income right? (so my income will become Rs 5 lakhs or below & 87A deduction will be effective and my tax on Rs 7 lakhs gross income will be nil? )

3) if I want to repeat the Rs 150,000 deductions under 80c ( I have no other deductions under 80c) ,can I open a similar SCSS FD for the maxiumum Rs 1.5 lakhs every year & repeat the same process?

4) hopefully in FY2019-20 Govt may enhance exemption limit

Replies (3)

Kapadia Pravin

17264 Points Joined December 2018

1. You should go for Tax Saver Bank FD for 5 yrs for 1.5 lakhs and not for SCSS FD A/c

2. You can claim 80TTB upto 50000/- ( Note that 80TTB is not allowed on SCSS A/c )

3. You can repeat 1.50 lakhs every year in Tax Saver Bank FD scheme

4. Everybody hopes for this.

herbsandchilli Trading

81 Points Joined February 2018

Originally posted by : Kapadia Pravin
	1. You should go for Tax Saver Bank FD for 5 yrs for 1.5 lakhs and not for SCSS FD A/c2. You can claim 80TTB upto 50000/- ( Note that 80TTB is not allowed on SCSS A/c )3. You can repeat 1.50 lakhs every year in Tax Saver Bank FD scheme4. Everybody hopes for this.

1)Thanks for clarifying to go with "Tax Saver 5 year Fxed Bank FD instead of SCSS FD.

2) understood that 80TTB Rs 50K deduction excludes the interest accrued on Tax saver FD.

3)One small doubt under Tax saver 5 year Bank FD - Bank will credit interest quarterly or will just report as accrued interest in Form 26AS & credit the 5 year's accumulated interest on FD maturity (5 years) ?

4) since not planning on any other 80c schemes - shall be making a Tax Saver 5 year FD of Rs 1.5 lakhs (or maximum allowed under any revision ) to bring my income below Rs 5 lakhs to be eligible for Rebate under section 87A.

your reply highly appreciated

https://www.charteredclub.com/senior-citizen-saving-scheme/