I took my early retirement on 12.31.2020 at the age of 56. I then received part of my pension contribution. My company has a private provident fund trust. I received Rs. 25 lakhs on June 5, 2021 being my contingency fund (PF) owed by the company. Can I deposit Rs. 15 lakhs on this PF contribution into the savings program for the elderly, although I must still be 60, as I am told that those who retire early can open an account under of this program? -S Shah
According to the Senior Citizen Saving Scheme 2019, anyone over 60 can open an account and deposit up to Rs. 15 lakhs under the Savings Program for Seniors. Anyone over the age of 60, whether employed or self-employed, can open an account under this scheme with money received from any source. Deposits under this program can be made either to one account or to multiple accounts, but the total amount of all deposits under this program cannot exceed Rs. 15 lakhs at any one time.
The scheme is an exception in the case of a person, who has taken early retirement or who has retired at retirement age, who may open an account under this scheme at any time after the age of retirement. 55 years old even before reaching the threshold age of 60. years. These people can only open an account in the framework of this scheme with their retirement benefits and this also within one month from the date of receipt of the retirement benefits. Please note that the one month restriction is counted from the date of receipt of pension benefits and not from the date of retirement. So, although you retired in December 2020 but your contributions to the Provident Fund, which are treated as pension benefits, are not received until June 5, 2021, you can deposit 15 lakhs as part of this. plan within one month, that is to say before July 4, 2021. When opening the account under this plan, you must provide proof of the payment date of your fund. pension due with the bank account where it was deposited as well as a certificate from your employer concerning your employment and retirement benefits.
Balwant Jain is a tax and investment expert. He can be contacted at firstname.lastname@example.org
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