SCSS pays simple interest, out to your bank every quarter. It does not compound, so the ₹30,750 you receive does not sit in the account earning more. Your ₹15.00 L principal is untouched and is returned in full at maturity. Over the 5-year term you draw ₹6,15,000 as income; extend once by 3 years and the 8-year draw reaches ₹9,84,000.
| Year | Quarterly ×4 | Income this year | Cumulative income |
|---|---|---|---|
| 1 | ₹30,750 | ₹1,23,000 | ₹1,23,000 |
| 2 | ₹30,750 | ₹1,23,000 | ₹2,46,000 |
| 3 | ₹30,750 | ₹1,23,000 | ₹3,69,000 |
| 4 | ₹30,750 | ₹1,23,000 | ₹4,92,000 |
| 5matures | ₹30,750 | ₹1,23,000 | ₹6,15,000 |
| 6 | ₹30,750 | ₹1,23,000 | ₹7,38,000 |
| 7 | ₹30,750 | ₹1,23,000 | ₹8,61,000 |
| 8extended end | ₹30,750 | ₹1,23,000 | ₹9,84,000 |
| Deposit | Quarterly | Monthly | Annual | 5-yr interest |
|---|---|---|---|---|
| ₹5.00 L | ₹10,250 | ₹3,417 | ₹41,000 | ₹2,05,000 |
| ₹10.00 L | ₹20,500 | ₹6,833 | ₹82,000 | ₹4,10,000 |
| ₹15.00 L | ₹30,750 | ₹10,250 | ₹1,23,000 | ₹6,15,000 |
| ₹30.00 L | ₹61,500 | ₹20,500 | ₹2,46,000 | ₹12,30,000 |
Your annual interest of ₹1,23,000 is above the ₹50,000 senior-citizen threshold, so the bank will deduct TDS unless you file Form 15H (and your total income is below the taxable limit). Section 80TTB lets a senior deduct up to ₹50,000 of interest income a year.