Spouse or nominee can operate the Account of Deceased Sr. Citizen Assessee.

SENIOR CITIZEN SAVINGS SCHEME (AMENDMENT) RULES, 2014 - AMENDMENT IN RULE 8

NOTIFICATION NO. GSR 392(E) [F.NO.4/2/2012/NS-II], DATED 9-6-2014

In exercise of the powers conferred by section 15 of the Government Savings Bank Act, 1873 (5 of 1873), the Central Government hereby makes the following rules further to amend the Senior Citizens Savings Scheme Rules, 2004, namely:—

1. (1) These rules may be celled the Senior Citizen Savings Scheme (Amendment) Rules, 2014.

    (2) They shall come into force on the date of their publication in the Official Gazette.

2. In Senior Citizen Savings Scheme Rules, 2004, after sub-rule (3) of rule 8, following shall be inserted, namely:—

"Provided that in the case of a joint account, or where the spouse is the sole nominee, the spouse may continue the account on the same terms and conditions as specified under these rules:

Provided further that in case the spouse does not continue the joint account, the account shall be closed on an application in Form-F and the deposit refunded alongwith interest as above".

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Provision in Income Tax Law regarding Maintenance Allowance to Spouse.

In case of Divorce, if the male Assessee once paid amount of Maintenance Allowance to spouse is not to be taxable in female Assessee's hands. It is the capital receipt against one time or monthly receipt payment of Maintenance Allowance to Spouse by the Male Assessee is not be taxable amount in spouse hands.

In such case, the any other family members contribution for spouse Maintenance Allowance after Divorce would not carry any Income Tax implication. The amount paid could be debited to the capital account. If male Assessee are filing either ITR-4 or 4S, the capital account would incorporate the same. If however, assessee are filing ITR-1, 2 or 3, there is no requirement to reflect the same.

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