Step motherly Treatment to retirees from Pvt Sector
Govt slashes small savings rates by up to 140 basis pts
The government on Tuesday announced one of the steepest-ever cuts in small savings rates, which will see returns on the popular public provident fund deposits fall by 80 basis points to 7.1%, starting Wednesday, while the Senior Citizens Savings Scheme (SCSS2004) will see the annual interest rate drop by more than a percentage point.
The reduction in Senior Citizens savings Scheme will hurt Senior Citizens, Retirees from private sector who do not get pension and Divyangjans.
On one hand government has increased the Dearness Allowance rate by 4% for government pensioners, the non pensioners from private sector have been made poorer by reducing the interest rate of SCSS2004 to 7.1%.
SCSS2004 was started in 2004 as a welfare scheme to provide a regular income stream to retirees from private sector who do not get pension, at interest rate of 9%. The maximum deposit allowed is Rs.15 Lakhs and interest income is taxable. After 11 years in April 2015 the interest rate was increased to 9.3% to take care of increasing prices of essential commodities, medicines and health care. As soon as NDA government came to power the interest rate of SCSS2004 was reduced to 8.3% from July 2015 causing a drop in quarterly taxable interest income of senior citizens for meeting their daily needs. After representations to PM the interest rate was increased to 8.6% and now reduced to 7.1%.
This is going to make lives of senior citizens and divyangjans miserable. We request Local Circles to take up this issue with PM with a request to restore the rate to 9.3% for this welfare scheme in line with promise made in BJP Manifesto to ease living conditions of senior citizens and divyangjans. more
The government on Tuesday announced one of the steepest-ever cuts in small savings rates, which will see returns on the popular public provident fund deposits fall by 80 basis points to 7.1%, starting Wednesday, while the Senior Citizens Savings Scheme (SCSS2004) will see the annual interest rate drop by more than a percentage point.
The reduction in Senior Citizens savings Scheme will hurt Senior Citizens, Retirees from private sector who do not get pension and Divyangjans.
On one hand government has increased the Dearness Allowance rate by 4% for government pensioners, the non pensioners from private sector have been made poorer by reducing the interest rate of SCSS2004 to 7.1%.
SCSS2004 was started in 2004 as a welfare scheme to provide a regular income stream to retirees from private sector who do not get pension, at interest rate of 9%. The maximum deposit allowed is Rs.15 Lakhs and interest income is taxable. After 11 years in April 2015 the interest rate was increased to 9.3% to take care of increasing prices of essential commodities, medicines and health care. As soon as NDA government came to power the interest rate of SCSS2004 was reduced to 8.3% from July 2015 causing a drop in quarterly taxable interest income of senior citizens for meeting their daily needs. After representations to PM the interest rate was increased to 8.6% and now reduced to 7.1%.
This is going to make lives of senior citizens and divyangjans miserable. We request Local Circles to take up this issue with PM with a request to restore the rate to 9.3% for this welfare scheme in line with promise made in BJP Manifesto to ease living conditions of senior citizens and divyangjans. more
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Pvt sector seeks profit maximization thru any means. In Pvt sector labour laws are flouted. Though there is working hours ( eg,. 09AM to 5PM) entry time is fixed and all employees are to strictly follow, where as you cannot move out of the office at 5PM because of the work load. If you do daily, your boss will be unhappy, you lose favour. More you give time for work more you earn profit. We jokingly say, some may have retired if total hours spent is calculated. Some say, you are paid for 24 hours, 30days for the month. Why can't you work more! Hence human values get equated to money value. SO you get step motherly treatment. more
Nov 24
Thanks to Mr. Balasubramanyam.I feel more and more people should get together and make it a voice of Senior Citizens. more
Apr 09
Mr.Kaushik, you have completely wrong idea as to how incometax is worked out on an income of rs.30 lacs and howmuch deduction u/s. 80C is available to an individual. more
Apr 20
Let us not bluntly say that we will not vote but to coax the Government should think favourably about the Senior and super senior Citizens. No need of ant separate committee for this. They can include with the recommendations as and when they hike the DA for Government servants. Though the inbuilt IT on the DA increased is also there. However they should take it seriously and consider the senior lot. more
Apr 08
