Date:19/05/2006 URL: http://www.thehindubusinessline.com/2006/05/19/stories/2006051900731000.htm

Back Insecurity for senior citizens

The Senior Citizens Savings Scheme (SCSS) was introduced to provide some relief to the senior citizens and retired persons in the midst of rising inflation and falling interest rates. But recently the revenue authorities have directed the banks and the post-offices to deduct Tax at Source (TDS) from the quarterly interest paid to the account-holders of the SCSS.

The banks have even deducted TDS from those account-holders who have furnished the self-declaration attached to the SCSS account opening form. The government, in order to enrich its treasury, is virtually taking money out of the pockets of the senior citizens who have put hard-earned money into the SCSS; many of them have no other source of income.

The government should honour in letter and spirit the promise of a social security net for the aged and senior citizens and declare the income earned under SCSS as free from TDS.

Suhas S.Bohra

Mumbai

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