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1,2,3 and 5 year time Deposit |
Interest @ 9 percent, 10 percent, 11 percent and 11.5 percent p. a. (calculated at quarterly compounding basis) |
No limit on deposits; account can be opened, in multiples of Rs. 50 in a single name or joint names; even a minor can open account |
Interest open upto Rs. 12,000 along with incomes from other approved investments u/s 80L |
Not chargeable to wealth-tax |
6-year National Savings Certificates VIII Issue |
Compound (half-yearly) interest @ 11.5percent p.a. payable on maturity |
No limit on deposit; certificates are issued in denominations if Rs. 100, Rs. 500, Rs. 1,000, Rs. 5,000 and Rs. 10,000 |
Investment and accrued interest qualify for tax rebate under section 88. Interest exempt up to Rs. 12,000 under section 80L |
Not chargeable |
5-year Post Office Recurr-ing Deposit |
Compound interest @ 11.5 percent compounded quarterly but payable on maturity. An amount of Rs. 10 denomi- nation will yield Rs. 811.15 at maturity |
No limit on deposits. Deposits can be made in multiples of Rs. 5 per month (Minimum : Rs. 10 per month) |
Interest exempt up to Rs. 12,000 along with incomes from other approved investments u/s 80L |
Investment not chargeable to wealth tax |
15-year Public Provident Fund |
Compound interest @ 11 percent every year but payable at the time of maturity |
Minimum: Rs. 100 and Maximum Rs. 60,000 in every financial year |
Interest totally exempt u/s. 10(11); investment qualifies for tax rebate under section 88 |
Investment not chargeable to wealth tax |
Post Office Savings Bank Account |
Interest @ 4.5 percent p.a. credited annually |
Minimum Rs. 20 and Maximum Rs. 50,000 for an individual and Rs. 1,00,000 for two or more adults jointly in one or more accounts. No limit on group/institutional or official capacity accounts |
Interest totally exempt u/s 10(15)(i) |
Investment not chargeable to wealth tax |
10-year Social Security Certificates |
Rs. 1,000 becomes Rs. 3,000 on maturity |
Maximum Rs. 5,000 in denomination of Rs. 500 and Rs. 1,000 [only individual in the age group of 18-45 years can invest] |
Interest deductible up to Rs. 12,000 along with other incomes under section 80L |
Investment not chargeable to wealth tax |
Post office monthly income account (6 years) |
Interest @ 12 percent per annum payable monthly, in addition a bonus of 10 percent payable on maturity |
One or more accounts can be opened but deposits can not exceed Rs. 2,04,000 in single account and Rs. 4,08,000 in joint account. Minimum deposit Rs. 6,000 |
Interest deduct-ible upto Rs. 12,000 along with other incomes under section 80L |
Investment not chargeable to wealth tax |
National Savings Scheme, 1987 (now discontinued) |
Interest @ 11 percent credited annually on April 1 |
One or two deposits per month in multiples of Rs. 100. Maximum : Rs. 40,000 in a year |
100 percent of amount deposi-ted is deductible under section 80CCA (up to the assessment year 1992-93), on withdrawal of 100 percent of principal and interest taxable. However, amount recei-ved by legal heirs on the death of depos-itor is not char-geable to tax in the hands of legal heirs |
Investment not chargeable to wealth tax |
National Savi-ngs Scheme, 1992 |
Interest @ 11 percent which can be withdra-wn at any time |
No limit on deposit, deposit can be made in multiples of Rs. 100 |
Interest deduc-tible upto Rs.12,000 u/s 80L ; investment qualifies for tax |
Not chargeable to wealth tax |
5-year Relief Bonds, 1993 |
9 percent p.a. payable half-yearly or com-pounded with half yearly rests. |
Without any limit ; open for investments by individuals and HUFs ; joint holding by individuals per-missible |
Interest is totally exempt under section 10(15)(iic) in the case of an individual and a Hindu undivid-ed family |
Investment not chargeable to wealth tax |
Deposit Scheme for Retiring Go-vernment Emp-loyees, 1989 and Deposit Scheme for Retiring Emp-loyees of Public Sector Compa-nies, 1991 |
Simple interest @ 9 percent p.a. payable on June 30 and December 30 |
Any amount not exceeding the retirement benefits receiv-ed by a Government employee or an employee of a public sector company can be deposited (mini-mum amount Rs. 1,000) in multiples of Rs. 1,000 |
Interest totally exempt under section 10(15) |
Investment not chargeable to wealth tax |
