| Name of Securities |
Rate of
Interest |
Limits of
Investment |
Exemption
under the IT Act |
Exemption
under the WT Act |
| (1) |
(2) |
(3) |
(4) |
(5) |
| 1,2,3 and 5-year Time Deposit |
Interest @ 6.25 per cent, 7.25 per cent 7.50 per cent 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; ever a minor can open account |
Interest exempt up to Rs. 12000 along with incomes from other approved investments under section 80L [see para 107.22-1] |
Not chargeable to wealth–tax |
| 6-year National savings certificates VIII Issue |
Compound (half –yearly) interest @ 8 percent p.a. payable on maturity
|
No limit on deposits; certificates are issued in denominations of Rs. 100, Rs. 500, Rs.1000, Rs 5000 and Rs. 10,000 |
Investment and accrued interest qualify for tax rebate under section 88[see also para 111]. Interest exempt up to Rs. 12000 under section 80L
|
Not chargeable |
5-year Public Office Recurring Deposit
|
Interest compound qtly but payable on maturity. An amount of Rs. 10 denomination will yield Rs. 728.90 at maturity
|
No Limit on deposits. Deposits can be made in multiples of Rs. 5 p.m. (minimum : Rs. 10 per month)
|
Interest exempt up to Rs. 12,000 along with incomes from other approved investments under section 80L [see para 107.22-1]
|
Investment not chargeable to wealth-tax |
15- year Public Provident Fund
|
Compound interest @ 8 per cent every year but payable at the time of maturity
|
Minimum : Rs. 500 and maximum : Rs. 70,000 in every financial year
|
Interest totally exempt under section 10 (11); investment qualifies for tax rebate under section 88
|
Investment not chargeable to wealth-tax |
Post office Savings Bank Account
|
Interest @ 305 per cent p.a. credited annually
|
Minimum: Rs. 20 and maximum: 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 under section 10(15) (i)
|
Investment not chargeable to wealth-tax |
Post Office monthly income account (6 Years)
|
Investment @ 8 per cent per annum payable monthly, in addition a bonus of 10 per cent payable on maturity
|
One or more accounts can be opened but deposits cannot exceed Rs. 3,00,000 in single account and Rs. 6,00,000 in joint account. Only one deposit in the account in the multiple of Rs. 1,000 is permitted
|
Interest deductible up to Rs. 12,000 along with other incomes under section 80L [see para 107.22-1] |
Investment not chargeable to wealth-tax |
| National Savings Scheme 1987 (now discontinued) |
Interest @ 705 per cent credited annually on April 1
|
One or two deposits per month in multiples of Rs. 100, maximum: Rs. 40,000 in a year
|
100 per cent of amount deposited is deductible under section 80CCA (up to the assessment year 1992-93), on withdrawal of 100 per cent of principal and interest taxable [see para 107.1]; however amount received by legal heirs on the death of depositor is not chargeable to tax in the hands of legal heirs |
Investment of chargeable to wealth-tax |
National Savings Scheme, 1992 (deposit cannot be made after October 31,2002)
|
Interest @ 7.5 percent which can be withdrawn at any time
|
No limit on deposit, deposit can be made in multiples of Rs. 100
|
Interest deductible up to Rs. 12,000 under section 80L, investment qualifies for tax rebate under section 80
|
Not chargeable to wealth-tax |
5-year Relief Bonds, 2002, (discontinued with effect from March 1, 2003)
|
8 per cent p.a. payable half-yearly or compounded with half yearly rests
|
Maximum investment Rs. 2,00,000 in a year; open for investments by individuals and HUFs; joint holding by individuals permissible.
|
Interest is totally exempt under section 10(15) (iic) in the case of an individual and a Hindu undivided family
|
Investment not chargeable to wealth-tax |
| 5-year Savings Bonds, 2003 |
6.5 per cent payable half-yearly or compounded with half-yearly rests |
No maximum limit, amount can be invested in multiple of Rs. 1000, open for investment by resident individual (joint holding or holding on behalf of minor also possible) or by HUF |
Interest exempt from tax |
Investment not chargeable to wealth-tax. |
