National Savings Certificates (IX Issue) Amendment Rules, 2014. - G.S.R. 495(E) - Income Tax

MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 11th July, 2014 G.S.R. 495(E) . In exercise of the powers conferred by Section 12 of the Government Savings Certificates Act, 1959 (46 of 1959), the Central Government hereby makes the following rules further to amend the National Savings Certificates (IX Issue) Rules, 2011 , namely:- 1. (1) These rules may be called the National Savings Certificates (IX Issue) Amendment Rules, 2014. (2) They shall be deemed to have come into force on the 1st day of April, 2014. 2. In the National Savings Certificates (IX Issue) Rules, 2011 (hereinafter referred to as the said rules), in rule 15 , after Sub-rule (3), the following shall be inserted, namely:- (4) Where a certificate has been purchased on or after the 1st day of April, 2014, the amount inclusive of interest, payable on encashment of the certificate at any time after the expiry of its maturity period shall be Rs.236.60 for denomination of Rs. 100 and at proportionate rate for any other denomination and the interest as specified in the Table below shall accrue to the holder or holders of the certificate at the end of each year and the interest so accrued at the end of each year upto the end of the fourth year shall be deemed to have been reinvested on behalf of the holder and aggregated with the amount of face value of the certificate. TABLE Year for which interest accrues Amount of interest (rupees) accruing on certificate of Rs. 100 denomination First Year 8.99 Second Year 9.80 Third Year 10.68 Fourth Year 11.64 Fifth Year 12.69 Sixth Year 13.83 Seventh Year 15.08 Eighth Year 16.43 Ninth Year 17.91 Tenth Year 19.52 Note: The amount of interest accruing on a certificate of any other denomination shall be proportionate to the amount specified in the Table above. . 3. In rule 16 of the said rules,- (a) In clause (ii) of sub-rule (4), for the figures, letters and words 1st day of April, 2013 , the figures, letters and word 1st day of April, 2013 but before the 1st day of April, 2014 shall be substituted; (b) after clause (iii) of Sub-rule (4)) and the Table relating thereto, the following shall be inserted, namely:- (iv) If a certificate is encashed under sub-rule (1) after the expiry of three years from the date of certificate purchased on or after the 1st day of April 2014, the amount payable, inclusive of interest accrued under rule 15 and after adjustment of discount, shall be as specified in the Table below for a certificate of Rs. 100 denomination and at a proportionate rate for a certificate of any other denomination. TABLE Period from date of certificate to date of its encashment Amount payable inclusive of interest (rupees) (1) (2) 3 years or more, but less than 3 years and 6 months 124.24 3 years and 6 months or more, but less than 4 years 128.81 4 years or more, but less than 4 years and 6 months 133.56 4 years and 6 months or more, but less than 5 years 138.48 5 years or more, but less than 5 years and 6 months 144.50 5 years and 6 months or more, but less than 6 years 149.92 6 years or more, but less than 6 years and 6 months 155.55 6 years and 6 months or more, but less than 7 years 161.38 7 years or more, but less than 7 years and 6 months 167.43 7 years and 6 months or more, but less than 8 years 173.71 8 years or more, but less than 8 years and 6 months 180.22 8 years and 6 months or more, but less than 9 years 186.98 9 years or more, but less than 9 years and 6 months 193.99 9 years and 6 months or more, but less than 10 years 201.27 . . EXPLANATORY MEMORANDUM The Ministry of Finance, Department of Economic Affairs (Budget Division) vide its O.M.No.6-1/2011-NS.II (Pt.), dated the 11th November, 2011 has communicated to all concerned the various decisions taken by the Government on the recommendations of the Shyamala Gopinath Committee for comprehensive review of National Small Savings Funds (NSSF). Accordingly, the rates of interests on various small savings schemes for the financial year 2014-15 revised with effect from Ist April, 2014 have been communicated vide its O.M. No.6-1/2011-NS.II, dated the 4th March, 2014. It is certified that the interest of no deposit holder would be prejudicially affected by the retrospective effect given to the notification. [F. No. 6-1/2011-NS-II (Pt.II)] RAJAT BHARGAVA Jt. Secy. Note: The principal rules were published vide number G.S.R. 848(E), dated the 29th November, 2011 , subsequently amended vide numbers G.S.R. 319 (E), dated the 25th April, 2012 , G.S.R. 403 ( E ), dated the 25th June 2013 and G.S.R. 227 ( E ), dated the 13th March, 2014 .