Clarification regarding Senior Citizen Saving Account Scheme and effect of section 80C of Income Tax.

There are some clarification about the scheme of Senior Citizen Saving Account which effect on the Tax u/s. 80C of Income Tax Act as under:

Investment in an account under the senior citizens Saving Scheme Rules-2004 is eligible for deductions u/s. 80C.

The Interest Income on deposit made in the Senior Citizen saving Scheme is not eligible for deduction u/s. 80C.

Interest on specified Bank FD (Fixed Deposit) with a 5 years terms is taxable.  Similarly, Interest on amount deposited under the Senior Citizens Savings Scheme,2004 is also taxable.

Interest payable on the amount invested in the senior citizen deposit account scheme is subject to deduction of tax at source (TDS).  Interest payment has not been exempted from deduction of tax at source.

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