| A
scheme offering tax rebate under section 88 of Income Tax Act :
- A separate account shall be opened in the post office by
depositor for each year.
- 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.
- Interest credited in the account may be withdrawn at any time
by the option of depositor.
- Deposits may be withdrawn after expiry of 4 years from the
end of the year in which the account was opened.
- 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
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