Q & A: Retirement Planning
My husband invested Rs 15 lakh in SCSS from his retirement benefits jointly with me a few years ago. Now after becoming a senior citizen, I would like to invest also in SCSS for better interest benefit jointly with my husband out of my LIC & FD maturities. Is it permissible? SBI gave me annexure D with the application form whereas I found that PNB did not give the said form to my sister-in-law saying it is not required. Which bank is correct?
Priti Nandy, email
• Section 3 (3) of Senior Citizens Savings Scheme, 2019 states an account holder may operate more than one account under SCSS subject to the condition that the deposits in all the accounts taken together shall not exceed the maximum investment limit under the scheme which under section 4 (1) is Rs 15 lakh. Further under section 3 (4) an individual may open an account in an individual capacity or jointly with spouse. Since your husband has already exhausted the limit of Rs 15 lakh, he cannot be a part of the joint account with you, and SCSS joint accounts cannot be opened other than with spouse. It is not clear from your question what Annexure D is as you have not mentioned the form heading. Further different banks may have different forms and SCSS rules have also changed. If you are referring to form D, which is a counterfoil of the deposited amount, it should be collected for record-keeping.
Tax on capital gains
• I am a senior citizen and pay advance taxes on income. This year there is a possibility of a capital gain. How to compute advance tax on capital gains income?
S. Roy Choudhury, Calcutta
• Advance tax is payable on total income which also includes capital gains. But it is very difficult to estimate income from capital gains in advance. In such cases, tax calculated on capital gains can be paid in the remaining instalments of advance tax that are due.
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