The Budget for the Financial Year 2023-24 was represented in the parliament a few days ago (1st February).
The Central Finance Minister Nirmala Seetharaman, presenting the budget, indicated various welfare measures for ordinary citizens!
Apart from offering subsidies to senior citizens on taxes, the Central Finance Minister made another important announcement:
As per this, the maximum investment limit under the Senior Citizen Saving Scheme (SCSS) has been increased to Rs. 30 Lakhs. The upper limit was Rs. 15 Lakhs earlier!
The government increased the interest rate for this scheme (SCSS) has been increased to 8%. This interest rate, before 1st January 2023, was 7.6% interest per year.
As such, with the above 2 important concessions – increase in the Investment Limit & the Interest rate -, the senior citizens can earn additional monthly income by inert which becomes double – a substantial increase!!
Earlier, an investment of Rs. 15 Lakhs under this scheme, 7.6% interest was given and at maturity, Rs. 20.70 Lakhs was given. This works out to an earning of Rs. 1.14 Lakhs per year or Rs. 9500/- per month.
After the Budget announcement, the investment limit increased to Rs. 30 Lakhs, and the revised earning will be Rs. 2.4 Lakhs per year or Rs. 20000/- per month!
As such, the senior citizen can earn a monthly sum of Rs. 20000/- now as compared to Rs. 9500/- explained above!