No new accounts are opened under the Scheme from the close of business on 9-7-2004. [Notification : No. F. No. 15-01/2004-NS-II(i), dated 9-7-2004]
This scheme offered an option to earn a tax free income to retiring/retired employees of Central and State Governments on their retirement benefits.
|Eligibility||Only retired Central or State Government employees can open the account in their own name or jointly with spouse.|
|Minimum amount||₹ 1,000/-|
|Maximum amount||Entire retirement benefits in multiples of ₹ 1,000/-|
|Maturity period||Three years|
|Interest Rate||The investment earns interest at the rate of 7 per cent and is payable half yearly on every 30th June and 31st December.|
|Withdrawal||Entire balance or part can be withdrawn after completion of three yea₹ Only one withdrawal is permitted in a year. |
The depositor can continue the account after three years.
Premature encashment can be made after one year from the date of deposit but before the expiry of 3 years in which case interest on the amount so withdrawn will be payable at 4% from the date of deposit upto the date of withdrawal.
|Tax benefits||Not available|
|Interest Taxability||The interest earned is fully exempt from Income Tax under section 10(15)(iv)(i).|
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