PNB Senior Citizen Savings Scheme

Here is how you can use the SCSS calculator:

• Step 1: Go to an online SCSS calculator page.
• Step 2: Enter the accurate principal invested amount. The tenure is 5 years, and interest rate is fixed to 8.2% p.a.
• Step 3: Check the maturity amount and interest instantly on the calculator.

Document Required for PNB Senior Citizen Saving Scheme

To open a PNB Senior Citizen Savings Scheme account, you will need to provide the following documents:

• Identity Proof: Passport, Voter ID Card, PAN Card, Aadhaar Card, or Driving License.
• Address Proof: Aadhaar Card, Utility Bill (such as Electricity Bill, Water Bill, Gas Bill, Telephone Bill, etc.), or Bank Account Statement.
• Age Proof: Birth Certificate or Voter ID Card.
• Form-A: In addition to the above documents, senior citizens must also submit Form-A, which can be obtained from any PNB branch or downloaded from the official website.

Steps to Open PNB Senior Citizen Savings Scheme

To successfully open a savings bank account and an SCSS account, you'll need to follow a series of straightforward steps. Here’s a guide to help you through the process:

• Step 1: Submit the filled application form to open a savings bank account and an SCSS account.
• Step 2: Attach two passport-sized photos along with the application form.
• Step 3: Provide the necessary documents such as a copy of passport, PAN card, or declaration form No. 60 or 61, Aadhaar card.
• Step 4: Deposit the principal amount into your account.
• Step 5: Upon completing the application process, the account will become operational within a short period. These steps can be followed either at PNB's branch or conveniently online.

Tax Implications for PNB Senior Citizen Savings Scheme

The PNB Senior Citizen Saving Scheme is subject to taxation under the Income Tax Act of 1961. Investments in the PNB SCSS qualify for tax benefits under Section 80C, allowing for a deduction of up to Rs. 1.5 lakh per year.

Additionally, a deduction of up to ₹50,000 is available under Section 80TTB on interest earned from SCSS investments, as well as on interest from savings accounts and fixed deposits.

Exit Option For PNB Senior Citizen Savings Scheme

Here's an overview of the exit options and penalties associated with the PNB Senior Citizen Savings Scheme:

• Premature Closure with Penalty: Closing the account before maturity is allowed, but it comes with a penalty.
• No Loan Facility: The deposit in the SCSS account cannot be pledged to obtain loans, as this would contradict the scheme's purpose of providing regular income.
• Premature Withdrawal After One Year: You can withdraw or close the SCSS account after completing one year from the date of opening, but a penalty will be applied based on the tenure completed. If the account is closed after the first year but before the end of the second year, a penalty of 1.5% of the deposit amount will be deducted. If the account is closed on or after the second year, a penalty of 1% of the deposit amount will be deducted.