👴 SCSS Calculator
Calculate your guaranteed quarterly income from the Senior Citizen Savings Scheme (SCSS). The safest 80C investment for retirees.
Understanding the SCSS Math
Simple Interest vs Compound Interest
Unlike PPF or NSC where the interest compounds and is locked away, the Senior Citizen Savings Scheme (SCSS) does not compound your interest. Instead, it pays out the interest directly to your linked bank account every 3 months. In financial terms, this calculates on Simple Interest.
How is the Quarterly Payout Calculated?
The formula is incredibly straightforward: (Deposit Amount × Annual Rate %) ÷ 4.
Because the lock-in is 5 years, you will receive exactly 20 (5 yrs × 4 quarters) equal interest payouts over the lifespan of the account.
Taxability
- The Deposit: The initial amount you invest qualifies for deduction under Section 80C (up to ₹1.5 Lakhs).
- The Returns: The quarterly interest you receive is fully taxable according to your income tax slab. However, under Section 80TTB, senior citizens get a ₹50,000 tax exemption on total interest income earned in a financial year.
Maturity
At the end of exactly 5 years, the scheme matures, and you receive back 100% of your original Principal deposit. You have the option to extend the scheme for an additional 3 years at that time.
👴 SCSS Calculator
Calculate your guaranteed quarterly income from the Senior Citizen Savings Scheme (SCSS). The safest 80C investment for retirees.
Understanding the SCSS Math
Simple Interest vs Compound Interest
Unlike PPF or NSC where the interest compounds and is locked away, the Senior Citizen Savings Scheme (SCSS) does not compound your interest. Instead, it pays out the interest directly to your linked bank account every 3 months. In financial terms, this calculates on Simple Interest.
How is the Quarterly Payout Calculated?
The formula is incredibly straightforward: (Deposit Amount × Annual Rate %) ÷ 4.
Because the lock-in is 5 years, you will receive exactly 20 (5 yrs × 4 quarters) equal interest payouts over the lifespan of the account.
Taxability
- The Deposit: The initial amount you invest qualifies for deduction under Section 80C (up to ₹1.5 Lakhs).
- The Returns: The quarterly interest you receive is fully taxable according to your income tax slab. However, under Section 80TTB, senior citizens get a ₹50,000 tax exemption on total interest income earned in a financial year.
Maturity
At the end of exactly 5 years, the scheme matures, and you receive back 100% of your original Principal deposit. You have the option to extend the scheme for an additional 3 years at that time.