The National Savings Certificate Scheme 2019-NSC Rule 2019 Short Notes
4 Dec 2021
THE NATIONAL SAVINGS CERTIFICATES (VIII ISSUE) SCHEME, 2019 (RULES 1989 ADDED)
- “Act” means The Government Savings Promotion Act, 1873 (5 of 1873)
- “General Rules” means the Government Savings Promotion General Rules, 2018
-FORM – 1-Application for opening an account
-FORM – 2-Application for closure of account
-FORM – 3-Application for pledging of account
- “Act” means The Government Savings Promotion Act, 1873 (5 of 1873)
- “General Rules” means the Government Savings Promotion General Rules, 2018
-FORM – 1-Application for opening an account
-FORM – 2-Application for closure of account
-FORM – 3-Application for pledging of account
Type of accounts:
(a) A Single Holder Type Account may be opened by an adult for himself, or on behalf of a minor or a person of unsound mind of whom he is the guardian; or by a minor who has attained the age of ten years;
(b) Joint A- Type Account may be opened jointly in the names of upto three adults payable to all the holders jointly or to the survivor or survivors.
(c)Joint B-Type Account may be opened jointly in the name of upto three adults payable to any of the account holders or to the survivor or survivors.
-An individual may open any number of accounts
Pledging of account:
(a) the President of India or the Governor of a State in his official capacity;
(b) the Reserve Bank of India or a Scheduled Bank or a Cooperative Society, including a Co-operative Bank;
(c) a public or private corporation or a Government company;
(d) a local authority; or
(e) a housing finance company approved by the National Housing Bank and notified by the Central Government
-A blind or a person with physical infirmity making him incapable of operating the account may pledge his deposit through any literate individual whom he authorizes for this purpose
-If the account is prematurely closed (in extreme condition) after the expiry of one year but before the expiry of three years from the date of deposit, the premature closure shall be allowed and on such premature closure of the account interest on principal amount at the rate applicable to the Post Office Savings Account from time to time for the complete months for which the account has been held, shall be payable.
-If an account is prematurely closed under (in extreme condition) after the expiry of three years from the date of the opening, the amount payable, as per specified in the table.
-Deduction of 2% TDS in respect of cash withdrawal above RS.1crore by an account holder of National savings schemes/certificates since 01.04.2019.
- As regards the issue & discharge of NSCs/KVPs issued on or after 01.07.2016, the consolidation and vouchers of Ho & SOs should be transferred to the SBCO of the HPO concerned.
Some Changes after the SB Order 12/2020 order 14/02/2020
-Minimum amount for opening of account under this scheme: Rs.1000/- in multiple of Rs.100/-
(b) Joint A- Type Account may be opened jointly in the names of upto three adults payable to all the holders jointly or to the survivor or survivors.
(c)Joint B-Type Account may be opened jointly in the name of upto three adults payable to any of the account holders or to the survivor or survivors.
-An individual may open any number of accounts
Pledging of account:
(a) the President of India or the Governor of a State in his official capacity;
(b) the Reserve Bank of India or a Scheduled Bank or a Cooperative Society, including a Co-operative Bank;
(c) a public or private corporation or a Government company;
(d) a local authority; or
(e) a housing finance company approved by the National Housing Bank and notified by the Central Government
-A blind or a person with physical infirmity making him incapable of operating the account may pledge his deposit through any literate individual whom he authorizes for this purpose
-If the account is prematurely closed (in extreme condition) after the expiry of one year but before the expiry of three years from the date of deposit, the premature closure shall be allowed and on such premature closure of the account interest on principal amount at the rate applicable to the Post Office Savings Account from time to time for the complete months for which the account has been held, shall be payable.
-If an account is prematurely closed under (in extreme condition) after the expiry of three years from the date of the opening, the amount payable, as per specified in the table.
-Deduction of 2% TDS in respect of cash withdrawal above RS.1crore by an account holder of National savings schemes/certificates since 01.04.2019.
- As regards the issue & discharge of NSCs/KVPs issued on or after 01.07.2016, the consolidation and vouchers of Ho & SOs should be transferred to the SBCO of the HPO concerned.
Some Changes after the SB Order 12/2020 order 14/02/2020
-Minimum amount for opening of account under this scheme: Rs.1000/- in multiple of Rs.100/-
*Type of account:
-a single holder type account: adult himself or on behalf of a minor or a person of unsound mind
-joint A type: upto three adults
-joint B type: upto three adults
*Some important fees:
-Issue of duplicate passbook: Rs.50/-
-Issue of statement of account or deposit receipt: Rs.20/- in each case
-Issue of passbook in lieu of loss and mutilated certificate: Rs.10/- per registration
-Cancellation or change of nomination-Rs.50/-
-Transfer of account-Rs.100/-
-Pledging of account-Rs.100/-
Note: GST @18% shall be charged in addition to above amount.
*Payment of maturity value:
-by the transfer to the savings bank account of the payee
-by a crossed cheque
-by cash, if the amount is below the limit prescribed in this regard under the income tax act, 1961.
-An account (certificate) which has matured but not closed, the eligible balance in the account shall continue to earn interest at the rate applicable to the post office saving account, till the closure of account.
- ‘Eligible balance’ means the amount of balance at the credit of the account, including interest accrued thereon.
-joint A type: upto three adults
-joint B type: upto three adults
*Some important fees:
-Issue of duplicate passbook: Rs.50/-
-Issue of statement of account or deposit receipt: Rs.20/- in each case
-Issue of passbook in lieu of loss and mutilated certificate: Rs.10/- per registration
-Cancellation or change of nomination-Rs.50/-
-Transfer of account-Rs.100/-
-Pledging of account-Rs.100/-
Note: GST @18% shall be charged in addition to above amount.
*Payment of maturity value:
-by the transfer to the savings bank account of the payee
-by a crossed cheque
-by cash, if the amount is below the limit prescribed in this regard under the income tax act, 1961.
-An account (certificate) which has matured but not closed, the eligible balance in the account shall continue to earn interest at the rate applicable to the post office saving account, till the closure of account.
- ‘Eligible balance’ means the amount of balance at the credit of the account, including interest accrued thereon.
NATIONAL SAVINGS CERTIFICATE (VIII Issue):
Note: Till date certificates are exists so we added study material about certificate
1.Who can purchase:
-a single holder type account: adult himself or on behalf of a minor or a person of unsound mind
-joint A type: upto three adults
-joint B type: upto three adults
-The NSC introduced from-08-05-1989
2.Maturity:
Period of maturity of a certificate is Five Years.
3.Nomination / Transferability:
-Nomination facility is available.
-Certificates can be transferred from one post office to any other post office.
-Transfer from one person to another person permissible in certain conditions.
4.Denomination / Deposit limits:
-Before 01.07.2016 NSC was in the shape of certificate of various denomination of (face value) of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000 & Rs. 10,000.
-After 01.07.2016 NSC is being in the shape of passbook; Now minimum deposit Rs.1000 in multiples of Rs.1000/-
-There is no maximum limit for purchase of the certificates.
5.Interest:
-Interest accrued on the certificates every year is liable to income tax but
deemed to have been reinvested.
6.Premature encashment:
Premature encashment of the certificate is not permissible except at a discount in the case of
-death of the holder(s),
-forfeiture by a pledge and when ordered by a court of law.
-Place of Encashment/discharge on maturity: Can be encashed/discharged at the post office where it is registered or any other post office.
7.Income Tax relief:
Income Tax rebate is available on the amount invested and interest accruing every
year under Section 80 C of Income tax Act, as amended from time to time.