Post Office Savings Scheme


Scheme Tax Implications In case of Death of Account holder Premature Closure Additional Points   Deposits Interest Earned   Post Office Savings Account (SB) Not qualified for deduction. Resident Senior Citizen- Interest is tax-free under section 80TTB for up to Rs. 50,000 (covering all type of interest earned from deposits made with post office, Banks, Cooperative Society)

 

Others- up to 10,000 Under Section 80TTA (covering all type of saving account interest earned from the Post office, Banks, Cooperative Society)

 

The balance in the account shall be payable to the nominee or legal heir(s)

On the demise of a Joint holder, the survivor will be the sole holder. If the survivor already has a single account in his / her name, Joint account have to be closed.

 

It Can be closed at any time 1.can open only one account per individual

 

2. Nomination is compulsory at the time of opening of the account.

 

3. Additional Facilities available – Cheque Book, ATM card, Net banking, Mobile Banking.

 

4. If no deposit / withdrawal occurs in an account during continuous three financial years, the account shall be treated as silent / dormant.

  5- Years Post Office Recurring Deposit Account (RD) Not qualified for deduction For Resident Senior Citizen- Interest is tax-free under section 80TTB for up to Rs. 50,000 (covering all type of interest earned from deposits made with post office, Banks, Cooperative Society) .

 

For Others-Taxable

nominee / legal heirs can submit a claim to get the eligible balance of such RD account and can continue RD account till maturity. It can be closed after 3 years. 1.Any number of accounts can be opened.

 

2.Depositor can make advance deposit up to 5 Years.

 

3.Depositor can avail loan facility subject to prescribed condition.

 

4.Maturity- 5years from the date of opening

 

5.RD account can be extended for a further period of 5 years.

 

 

  National Savings Time Deposits Accounts (TD) 5 Year TD is eligible for deduction u / s 80C. For Resident Senior Citizen- Interest is tax-free under section 80TTB for up to Rs. 50,000 (covering all type of interest earned from deposits made with post office, Banks, Cooperative Society) .

 

For Others-Taxable

the deposit in the account shall be payable to the nominee or legal heir(s)

On the death of one or two of the account holders in a joint account, the surviving account holder or holders, if any, shall be treated as the owner or owners of the account and such account.

It can be closed after 6 months. Pre-closure fee at prescribed rates are applicable. i) Any number of accounts can be opened.

 

2. Maturity -1 Year, 2 Year, 3Year, 5 year as the case may be.

 

3. Term Deposit account can be extended after maturity

 

4.TD account can be closed prematurely.

5.It can be pledged or transferred as security.

  National Savings Monthly Income Account (MIS) Not qualified for deduction Resident Senior Citizen- Interest is tax-free under section 80TTB for up to Rs. 50,000 (covering all type of interest earned from deposits made with post office, Banks, Cooperative Society)

 

For Others- Taxable

the amount standing in the account shall be payable to the nominee or legal heir(s) . It Can be closed after 1 year. Pre-closure fee at prescribed rates are applicable. 1.Any number of accounts can be opened.

 

2. Maturity- 5 Years from the date of opening.

 

3.Premature closure is permissible

  Public Provident Fund (PPF) Qualified for deduction under Section 80c Tax- free the account shall be closed and nominee or legal heir(s) shall not be allowed to continue deposits in the account. After 5 years only in case of Severe Illness, Higher Education and NRI status. 1.Only one account can be opened all across the country either in Post Office or any Bank.

 

2.Maximum limit of Rs. 1.50 lakh shall be inclusive of the deposits made in his / her own account and in the account opened on behalf of minor.

 

3.Loan facility can be availed after expiry of one year.

 

4. A subscriber can take one withdrawal during a financial year after five years excluding the year of account opening.

 

5. Account will be matured after 15 F.Y. years excluding FY of account opening

 

6. Account holder may extend the accounts even after fifteen years for a further period of 5 years

Senior Citizen Savings Scheme (SCSS) Qualified for deduction u / s 80C.

 

For Resident Senior Citizen- Interest is tax-free under section 80TTB for up to Rs. 50,000 (covering all type of interest earned from deposits made with post office, Banks, Cooperative Society)

 

 

 

If spouse is a joint holder or a sole nominee, account can be continued till maturity if spouse is eligible to open SCSS account and not have another SCSS Account.

In other cases – the account shall be closed and the deposit refunded to the nominee or the legal heir

It can be closed at any time. Pre-closure fee at prescribed rate are applicable. 1.Any number of accounts can be opened.

 

2.The whole amount of deposit in a joint account shall be attributable to the first account holder only

 

3.Maturity- 5 Years from the date of opening.

 

4. Premature closure is permissible.

 

5.Account holder may extend the accounts after maturity for further period of 3 years.

Sukanya Samriddhi Accounts (SSA) Qualified for Deduction u / s 80C.

 

Tax- free The eligible balance in the account shall be payable to Nominee

 

After 5 years only in case of death of account holder or guardian or severe illness to the account holder. 1.Only one account can be opened in the name of a girl child.

 

2. Opened for a maximum two girl Child. More than two accounts can be opened in case of twins / triplets girls.

 

3.Withdrawl and premature closure are allowed subject to prescribed conditions.

 

4. it has a tenure of 21 years or until the girl child marries after the age of 18.

 

  5 Years National Savings Certificate (VIII Issue) (NSC) Qualified for Deduction u / s 80C. Interest earned is added back to the Initial Investment hence eligible for deduction u / s 80C. Only Final year Interest when NSC matures is taxable. Single Account- the eligible balance in the account shall be payable to Nominee

 

Joint Account- The surviving account holder or holders, if any, shall be treated as the owner or owners of the account

​Premature closure is not permitted (except in case of death and forfeiture) . 1. The deposit shall mature on completion of five years from the date of the deposit

 

2. Any number of accounts can be opened under the scheme.

 

3. NSC may be pledged or can be transferred as a security

 

4.It may be prematurely closed any time before maturity, subject to prescribed condition.

 

5. NSC can be transferred from one person to another subject to the prescribed condition

  Kisan Vikas Patra (KVP)

 

Not qualified for deduction Resident Senior Citizen- Interest is tax-free under section 80TTB for up to Rs. 50,000 (covering all type of interest earned from deposits made with post office, Banks, Cooperative Society)

 

For Others- Interest is taxable on an accrual basis.

Single Account- the deposit shall be payable to the nominee / legal heirs.

 

Joint Account – the surviving account holder or holders, if any, shall be treated as the owner or owners of the account.

​After two years six months 1.Any number of accounts can be opened under the scheme.

 

2. KVP may be pledged or transferred as a security

 

3.It may be prematurely closed any time before maturity, subject to the prescribed condition.

 

4. KVP can be transferred from one person to another subject to the prescribed condition.

 

5.Maturity period prescribed by the Ministry of Finance from time to time is applicable on the date of deposit.

 





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