BANKING AFFAIRS

Detailed explanation-1: -The maturity period for the SCSS scheme is 5 years. It can be extended for another 3 years, effectively bringing up the period to 8 years. If an individual is willing to extend such a period by 3 years, he/she shall submit Form B after duly filling it. An extension is allowed only once.

Detailed explanation-2: -SCSS accounts offer several benefits to senior citizens, including tax-free interest of up to Rs. 50, 000 earned on quarterly payments. Deposits of up to Rs. 15 lakhs can be made in the account, which matures after five years. Please note that any unpaid quarterly interest will not accrue additional interest.

Detailed explanation-3: -The account can be closed after expiry of 5 years from the date of opening of account. The depositor may extend the account for further period of 3 years. Premature closure is permissible subject to certain conditions. Deposits in SCSS qualify for deduction u/s 80-C of Income Tax Act.

Detailed explanation-4: -For extending the maturity of the SCSS account, the depositor needs to submit the request in the prescribed form within one year from the date of maturity. The request form can be obtained from the post office or the bank where the SCSS account is held.

Detailed explanation-5: -The amount of excess interest paid (at higher rate applicable to the deposits under SCSS) after maturity shall be deducted.