Table 124 : Small Savings Schemes in Force

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Table 124 : Small Savings Schemes in Force

TABLE 124 : SMALL SAVINGS SCHEMES IN FORCE

Name of the scheme		Limits of investment	Maturity period (years)			Rate of interest (per cent per annum)							Whether interest is tax free under Income Tax Act	Deductions under Sec.88 of Income Tax Act	Amount outstanding at end-March, 2003 (Rupees crore)
Name of the scheme		Limits of investment	April 1992	Since Sep. 2, 1993	Since Jan.1, 1999	Since April 1992	Since Sept. 2, 1993	Since Jan.1, 1999	Since Jan.15, 2000	Since Mar.1, 2001	Since Mar.1, 2002	Since Mar.1, 2003	Whether interest is tax free under Income Tax Act	Deductions under Sec.88 of Income Tax Act	Amount outstanding at end-March, 2003 (Rupees crore)
1		2	3	4	5	6	7	8	9	10	11	12	13	14	15

1.	Post Office Savings Bank Accounts	Minimum Rs.20 and maximum Rs.1,00,000 for an individual account (Rs.2 lakh jointly; No limit on group, institutional or official capacity accounts).	#	#	#	5.50	5.50	4.50	4.50 ##	3.50 ###	3.50 ###	3.50 ###	Yes Sec-80L	No	11545
2.	Public Provident Fund 1968	Minimum Rs.100 and maximum Rs.60,000 in a fiscal year.	15	15	15	12.00	12.00	12.00	11.00	9.50	9.00	8.00	Yes Sec-10	Yes	10132	*
3.	Post Office Time Deposit Account	Minimum Rs.50 and no maximum limit.	1,2,3 and 5	1,2,3 and 5	1,2,3 and 5	12.00 to 13.50 +	10.50 to 12.50 ++	9.00 to 11.50 +++	8.00 to 10.50 **	7.50 to 9.00 $	7.25 to 8.50 $$	6.25 to 7.50 $$$	Yes Sec-80L	No	15440
4.	Post Office Recurring Deposit Account	Minimum Rs.10 per month or any amount in multiples of Rs.5 and no maximum limit.	5	5	5	13.50	12.50	11.50	10.50	9.00	8.50	7.50	Yes Sec-80L	No	28084
5.	National Savings Scheme 1992	Minimum Rs.100 and no maximum limit.	4	4	4	11.00	11.00	11.00	10.50	9.00	8.50	-	Yes Sec-80L £	Yes	789
6.	Post Office Monthly Income Scheme	Minimum Rs.1,000 and maximum Rs.3 lakh in single account and Rs.6 lakh in joint account.	6	6	6	14.00	13.00	12.00	11.00	9.50	9.00	8.00	Yes Sec-80L	No	80915
7.	NSC VIII Issue	Minimum Rs.100 and no maximum limit.	6	6	6	12.00	12.00	11.50	11.00	9.50	9.00	8.00	Yes Sec-80L	Yes ££	44524
8.	Indira Vikas Patra	No limit.	5	5 1/2	6	14.87@	13.43@	12.25@	-	-	-	-	No	No	6009
9.	Kisan Vikas Patra	No limit.	5	5 1/2	6 @@	14.87 @	13.43 @	12.25 @	11.25 @	10.03 @	9.57 @	8.41 @	No	No	113658
10.	Deposit Scheme for Retiring Government Employees 1989/ Retiring Employees of Public Sector Companies 1991	Minimum Rs.1,000 and maximum not exceeding the total retirement benefits.	3	3	3	9.00	10.00	9.00	9.00	8.50	8.00	7.00	Yes Sec-10	No	.
# Open-ended scheme.
## 4.5% for individual/joint and group account, 4% for public account and security deposit accounts - for purchase of motor vehicles or tractors, 3% for official capacity accounts and other accounts.
### 3.5% for individual/joint and group account, 3% for public account and security deposit accounts - for purchase of motor vehicles or tractors, 2% for official capacity accounts and other accounts.
* Relate to post office transactions only.
+ 1 Year -12%, 2 Years -12.5%, 3 Years -13% and 5 Years -13.5%.
++ 1 Year -10.5%, 2 Years -11%, 3 Years -12% and 5 Years -12.5%.
+++ 1 Year - 9%, 2 Years -10%, 3 Years -11% and 5 Years -11.5%.
** 1 Year - 8%, 2 Years - 9%, 3 Years - 10% and 5 Years - 10.5%.
$ 1 Year - 7.5%, 2 Years - 8%, 3 Years - 9% and 5 Years - 9%.
$$ 1 Year - 7.25%, 2 Years - 7.5%, 3 Years - 8.25% and 5 Years - 8.5%.
$$$ 1 Year - 6.25%, 2 Years - 6.5%, 3 Years - 7.25% and 5 Years - 7.5%.
£ Tax is deducted at source at the rate of 20% at the time of withdrawal.
££ Interest accrued annually treated as 'deemed to be reinvested' under Section 88.
@ Compounded interest rate.
@@ Maturity period has been raised to 6 1/2 years with effect from January 15, 2000, 7 years 3 months from March 1, 2001, 7 years 8 months from March 1, 2002 and 8 years 7 months from March 1, 2003.
Note : 1. All the postal savings schemes do not come under the purview of Wealth Tax Act from the assessment year 1993-94.
2. Interest on post office tiime deposit is compounded quarterly.
3. National Savings Scheme 1992 was withdrawn w.e.f. November 1, 2002.
4. In addition to the interest, post office monthly income scheme also includes a bonus of 10 % payable on maturity after 6 years.
5. Interest rate on NSC VIII is compounded semi-annually.
6. Indira Vikas Patra has been discontinued w.e.f. July 17, 1999.
7. The Deposit Scheme for Retiring Government Employees 1989 & Deposit Scheme for Retiring Employees of Public Sector Companies 1991 have been discontinued w.e.f. July 9, 2004. A new Senior Citizens Savings Scheme has been notified w.e.f. August 2, 2004.
Source : 1. National Savings Organisation. 2. Receipts Budget, Government of India. 3. Accountant General, Posts & Telegraph. 4. Government of India Press releases. 5. Report of the Advisory Committeee to Advise on the Administered Interest Rates and Rati