Post Office Recurring Deposit (Amendment) Rules, 2011 - Amendment in rules 6, 9, 9A and 11 - G.S.R. 740(E) - Income Tax

NOTIFICATION NO. G.S.R. 740(E) DATED 04/10/2011 Post Office Recurring Deposit (Amendment) Rules, 2011 - Amendment in rules 6, 9, 9A and 11 In exercise of the powers conferred by section 15 of the Government Savings Banks Act, 1873 (5 of 1873), the Central Government hereby makes the following rules further to amend the Post Office Recurring Deposit Rules, 1981, namely: 1. (1) These rules may be called the Post Office Recurring Deposit (Amendment) Rules, 2011. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Post Office Recurring Deposit Rules, 1981, (A) in rule 6, for sub-rule (3), the following sub-rule shall be substituted, namely: "(3) The first monthly deposit shall be made at the time of opening the account and the amount of such deposit shall be the denomination of the account. Each subsequent monthly deposit shall be made up to 15th day of the month in respect of accounts opened between 1st day and 15th day of a calendar month and up to end of the calendar month in respect of accounts opened between 16th day and last day of the month and shall be equal to the first deposit."; (B) in rule 9, in sub-rule (2), after clause (b), the following new clause shall be inserted, namely : "(c) Where an account has become discontinued or where the defaults in monthly deposit in an account have not been rectified during its maturity period or maturity period as extended under sub-rule (1) of rule 7 and the depositor has retained the amount in the account beyond maturity period, the depositor shall be entitled to a simple interest at the rate applicable from time to time to post office savings accounts on the deposited amount from the date of maturity till the date of closure of the account."; (C) in rule 9A, for the words "interest at the rate applicable", the words "simple interest at the rate applicable", shall be substituted; (D) in rule 11, after sub-rule (3) the following sub-rule shall be inserted, namely: "(4) Notwithstanding anything contained in the foregoing rules, if sixty monthly deposits have been made in an account during its maturity period or maturity periods as extended under sub-rule (1) of rule 7 and the depositor has retained the amount in the account beyond the maturity period, the depositor shall be entitled to a simple interest at the rate applicable from time to time to post office savings accounts on the deposited amount from the date of maturity till the date of closure of the account."