Is there any TDS on SCSS?

You have mentioned that we can get up to 9.3% pa on Senior Citizen Savings Scheme. My doubts are:

1. Whether any TDS is deducted?
2. What is the minimum & maximum period of investment? Can these a/c be closed before maturity? Whether any penal charges are collected?
3. This deposit scheme available only at post offices or is it available elsewhere?
4. Whether PAN number is compulsory? If the investor do not have PAN number, is there any alternative available?
5. If the depositor & the recipient of the interest are different, who has to a/c for the interest for IT. Say, like son & father?

- KRS Gupta

1. Taxation: Investments in SCSS is eligible for tax deduction under Section 80C of IT Act. However, interest earned is fully taxable and tax is deducted at source only if the total interest exceeds ₹10,000 in a year. However, if income is not taxable, one has to provide from 15H or 15G to prevent TDS.
2. Maturity period of investment is 5 years. After maturity, the account can be extended for further three years within one year of the maturity by giving an application. In such cases, account can be closed at any time after the expiry of one year of extension without any deduction. This scheme also allows premature closure after one year on deduction of an amount equal to 1.5% of the deposit & after 2 years 1% of the deposit.
3. You may open SCSS account at any head post office or general post office or at select branches of the several designated nationalized banks: State Bank of India, State Bank of Hyderabad, State Bank of Indore, State Bank of Bikaner and Jaipur, State Bank of Patiala, State Bank of Saurashtra, State Bank of Mysore, State Bank of Travancore, Allahabad Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India, Vijaya Bank and ICICI Bank.
4. The applicant(s) who are not assessed to income tax, may furnish a self declaration, that their income from all sources (including the interest, income from the account to be opened vide this application) does not cross the exemption limit and the applicant is not required to obtain PAN under Income Tax Act, 1961.
   All other applicants shall mention the PAN number compulsorily and in case they have not so far been allotted PAN by the Income Tax Authorities, attested photocopy of the receipted application form for allotment of PAN should be attached to the application form.
5. SCSS account is non-transferable. It can be opened as joint account only with spouse. Son can only become a nominee who will receive the due amount after demise of account holder.