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Senior Citizen Savings Scheme (SCSS) Calculator — FY 2025-26

Calculate your quarterly interest income from SCSS at 8.2% on deposits up to ₹30 lakh. See tax impact with Section 80TTB and 80C deductions, TDS implications, and compare SCSS vs bank FD vs PPF for the best post-tax returns. Updated for FY 2025-26 rates.

Lump sum deposit (min ₹1,000, max ₹30,00,000)
%
Current rate: 8.2% p.a. (Q4 FY 2025-26)
5 years standard, extendable by 3 years once

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How to Use This Calculator

SCSS Returns tab

Enter your deposit amount (up to ₹30,00,000), the current SCSS interest rate (8.2% for FY 2025-26), and select tenure (5 years or 8 years with extension). The calculator shows your quarterly interest payout, annual income, total interest earned, and maturity amount. Use this to plan your retirement income from SCSS.

Tax on SCSS Interest tab

Enter your annual SCSS interest, other income (pension, rent, FD interest), select your age category and tax regime. The calculator computes your Section 80TTB deduction (₹50,000 under old regime), Section 80C benefit on the deposit, and estimates the tax payable on your SCSS interest. Helps you decide between old and new tax regime.

SCSS vs FD vs PPF tab

Enter a deposit amount to compare across three instruments: SCSS (8.2% quarterly payout), bank FD (7.0% quarterly compounding), and PPF (7.1% annual compounding, tax-free). The calculator shows pre-tax and post-tax returns over 5 years, factoring in PPF's ₹1.5 lakh annual contribution cap. See which option gives the best after-tax returns.

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The Formula

SCSS interest is calculated on a simple interest basis, paid out quarterly. The interest is NOT reinvested or compounded:

Quarterly Interest Payout:
Quarterly Interest = (Deposit × Annual Rate) / 4

Where:
Deposit = Lump sum amount (₹1,000 to ₹30,00,000)
Annual Rate = 8.2% p.a. (Q4 FY 2025-26)

Annual Interest:
Annual Interest = Deposit × Annual Rate / 100

Maturity Amount (5 years):
Maturity = Deposit + (Annual Interest × 5)

Tax on SCSS Interest (Old Regime):
Taxable Interest = Annual Interest − Section 80TTB (up to ₹50,000)
Tax = Taxable Interest × Applicable Slab Rate
Section 80C deduction: Up to ₹1,50,000 on the deposit amount

TDS:
TDS at 10% if annual interest > ₹50,000 (senior citizen threshold)

Unlike FD or PPF, SCSS does not compound interest. The quarterly payout model makes it ideal for retirees who need regular income. However, if you do not need regular income, an FD with cumulative option (quarterly compounding) may give higher total returns on the same principal.

Example

Ramesh — Retired bank manager, ₹25,00,000 in SCSS

Ramesh is 62, recently retired from a nationalised bank in Pune. He deposits ₹25,00,000 in SCSS at 8.2% to supplement his pension. He is in the old tax regime with a pension of ₹3,00,000/year.

Step 1: Calculate quarterly interest

SCSS deposit₹25,00,000
Interest rate8.2% p.a.
Quarterly interest₹25,00,000 × 8.2% / 4 = ₹51,250
Annual interest₹2,05,000
Monthly equivalent~₹17,083

Step 2: Calculate tax (old regime)

Annual SCSS interest₹2,05,000
Section 80TTB deduction−₹50,000
Taxable SCSS interest₹1,55,000
Other income (pension)₹3,00,000
Total taxable income₹4,55,000
Section 80C on deposit−₹1,50,000
Net taxable income₹3,05,000

Step 3: Five-year summary

Total interest (5 years)₹10,25,000
Maturity amount₹35,25,000
TDS deducted per year₹20,500 (10% of ₹2,05,000)

Ramesh receives ₹51,250 every quarter (~₹17,083/month) as guaranteed income. With 80TTB and 80C deductions under the old regime, his effective tax on SCSS interest is minimal. Over 5 years, he earns ₹10.25 lakh in interest on his ₹25 lakh deposit.

FAQ

The SCSS interest rate for Q4 FY 2025-26 (January–March 2026) is 8.2% per annum, paid quarterly. This rate has been unchanged since Q1 FY 2023-24 (April 2023) when it was raised from 8.0%. The rate is set by the Ministry of Finance and revised every quarter as part of the Small Savings Scheme interest rate notification. While the rate is reviewed quarterly, it does not change every quarter — it has remained at 8.2% for 12 consecutive quarters.
Age 60+: Any Indian citizen who has attained 60 years of age. Age 55-60: Retired civilian government employees, within 1 month of receiving retirement benefits. Age 50-60: Retired defence personnel, within 1 month of retirement. VRS retirees: Age 55+, within 3 months of receiving retirement benefits. The maximum deposit is ₹30,00,000 (₹30 lakh), increased from ₹15 lakh in Union Budget 2023 (effective 1 April 2023). Minimum deposit is ₹1,000 in multiples of ₹1,000. Joint accounts are allowed only with spouse, and the deposit counts towards the first depositor's limit. NRIs and HUFs are not eligible.
Yes, SCSS interest is fully taxable as “Income from Other Sources” at your applicable slab rate. TDS: If annual interest exceeds ₹50,000 (senior citizen threshold under Section 194A), TDS at 10% is deducted. You can submit Form 15H to avoid TDS if your total income is below the taxable limit. Section 80TTB: Under the old tax regime, senior citizens (60+) get a deduction of up to ₹50,000 on interest income from deposits — this covers SCSS, FD, and savings account interest combined. This deduction is NOT available under the new tax regime. Section 80C: The SCSS deposit amount (up to ₹1,50,000) qualifies for 80C deduction under the old regime, providing tax savings in the year of deposit.
Section 80TTB was introduced in Budget 2018 specifically for senior citizens (60+). It allows a deduction of up to ₹50,000 per year on interest income from deposits held in banks, post offices, and co-operative societies. This includes interest from SCSS, fixed deposits, recurring deposits, and savings accounts — all combined under the ₹50,000 limit. For a senior citizen with ₹15 lakh in SCSS at 8.2%, the annual interest is ₹1,23,000. After 80TTB deduction of ₹50,000, only ₹73,000 is taxable. This effectively reduces the tax burden by ₹15,000 (at 30% slab) or ₹10,000 (at 20% slab). Note: 80TTB is available only under the old tax regime. Under the new regime, the full interest is taxable.
SCSS has a 5-year lock-in with limited premature closure options: Before 1 year: Premature closure is NOT allowed (except on death of the depositor, in which case the account is closed without penalty and interest is paid up to the date of death). After 1 year but before 2 years: Allowed with a penalty of 1.5% of the deposit deducted from the principal. After 2 years but before 5 years: Allowed with a penalty of 1.0% of the deposit deducted from the principal. After maturity, the account can be extended once for 3 years. If you close during the extension period, a 1% penalty applies if closed after 1 year of extension. The extension must be requested within 1 year of the original maturity date, and the interest rate at the time of maturity (not the original rate) applies.

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