Investments made in the Senior Citizen Savings Scheme account are liable for income tax deduction benefits of up to Rs. 1.5 Lakh under Section 80C of the Income Tax Act, 1961. The interest earned through SCSS is completely taxable. In the event that the amount of interest received is greater than Rs. 50,000 for a tax purposes, TDS shall be deducted on the interest earned. This cap for the TDS deduction for SCSS assets shall extend from AY 2020-21 onwards.