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OUR USEFUL BANKING SERVICES

 

A scheme offering tax rebate under section 88 of Income Tax Act :

  1. A separate account shall be opened in the post office by depositor for each year.
  2. Rate of interest 10.5% p.a. Interest shall be allowed for a calender month on lowest balance at the credit of account between close of the 10th day and at the end of the month.
  3. Interest credited in the account may be withdrawn at any time by the option of depositor.
  4. Deposits may be withdrawn after expiry of 4 years from the end of the year in which the account was opened.
  5. Closure of account is permitted on expiry of 4 years.  

 In the  National Saving scheme rules 1992. in sub rule (1) of Rule 6, for clause (iii), the following clauses shall be substituted namely

          (iii) For the period commencing from the 1st day of March 2002 but before the                1st day of March 2003, the interest at the rate of eight and a half percent per                 annum shall be allowed for a calendar month on the lowest balance at credit                of an account between the close of the tenth day and the end of the month                and such interest will be calculated and credited in the account at the end                of each year.

           (iv) On  and from the 1st day of March 2003, the interest at the rate of seven & a 
                half percent per annum shall be allowed for the calendar month on the lowest 
                balance at credit of an account between the close of the tenth day and the 
                end of the month and such interest shall be calculated and credited in the 
                account at the end of each year

NSS 92



Note : Facility for nomination available

Scheme

Rate Of Interest

Units

Tax Benefit

NSS 92

7.5%

In multiple of Rs 100/-

No Maximum limit

-- Investment qualifies for rebate under section 88

-- Interest exempted up to Rs. 9000/- along with other such income as per section 80 L

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