When you’ll be able to open Senior Citizen Savings Scheme earlier than reaching 60

I’ve taken early retirement on 31.12.2020 at 56. I had obtained a part of my retirement dues at the moment. My firm has a personal Provident Fund belief. I’ve obtained Rs. 25 lakhs on fifth of June, 2021 being my Provident Fund (PF) due from the corporate. Can I deposit Rs. 15 lakhs out of this PF dues in Senior Citizen Saving Scheme although I’ve to but full 60 years of age as I’m informed that those that retire early can open account beneath this scheme?-S Shah

As per the Senior Citizen Saving Scheme 2019 any one who has accomplished 60 years of age can open an account and deposit upto Rs. 15 lakhs beneath Senior Citizen Saving Scheme. Any one who has accomplished age of 60 years whether or not salaried or self-employed can open account beneath this scheme with cash obtained from any supply. The deposits beneath this scheme might be made both in a single account or in a number of accounts however mixture quantity of all deposit beneath this scheme can not exceed Rs. 15 lakhs at any given level of time.

The scheme makes exception within the case of an individual, who has both taken early retirement or has retired on reaching the age of superannuation, who can open account beneath this scheme any time after 55 years of age even earlier than completion of the edge age of 60 years. Such individuals can open account beneath this scheme solely with their retirement advantages and that too inside one month from the date of receipt of retirement advantages. Please notice that the restriction of 1 month is counted from the date of receipt of retirement advantages and never from the date of retirement. So although you retired in December 2020 however since your Provident Fund dues, that are handled as retirement advantages, are obtained solely on fifth June 2021, you’ll be able to deposit full 15 lakhs beneath this scheme inside one month i.e. by 4th of July 2021. While opening the account beneath this scheme you’ll have to furnish proof of date of disbursement of your provident fund due with the checking account the place the identical have been deposited together with a certificates out of your employer about your employment and retirement advantages.

Balwant Jain is a tax and funding professional. He might be reached at jainbalwant@gmail.com

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