RBI has released a Notification on interest rates on two popular Tax saving schemes WEF 01.04.2014. These schemes are Public Provident Fund Scheme 1968 and Senior Citizens Saving Scheme 2004. PPF is most popular tax saving scheme among small investor as interest from PPF account is exempted from income tax. SCSS scheme is useful for senior citizens either having income less than exemption limit or falling under first slab of income tax rates.
Notification of interest Rates on these schemes is given below.
PUBLIC PROVIDENT FUND SCHEME, 1968 (PPF SCHEME, 1968) AND SENIOR CITIZENS SAVINGS SCHEME, 2004 (SCSS, 2004) - REVISION OF INTEREST RATES
CIRCULAR DGBA.CDD. NO. 5342 /15.02.001/2013-14, DATED 21-3-2014
Please refer to our circular RBI/2011-12/359 dated January 20, 2012 regarding interest rates on small savings schemes, wherein it was indicated that as per Government's decision on revision of interest on small savings schemes, the interest rates on various small savings schemes for every financial year will be notified by the Government before April 1st of that year.
The Government of India has now vide their Office Memorandum (OM) No. 6-1/2011-NS.II dated 4thMarch 2014, advised the rate of interest on various small savings schemes for the financial year 2014-15. Accordingly, the rates of interest on PPF, 1968 and SCSS, 2004 for the financial year 2014-15, effective from April 01, 2014, on the basis of the interest compounding/payment built-in in the schemes, will be as under:
The contents of this circular may be brought to the notice of the branches of your bank operating the PPF, 1968 and SCSS, 2004 schemes. These should also be displayed on the notice boards of your branches for information of the PPF, 1968 & SCSS, 2004 subscribers.
Interest Rate chart for all Popular schemes wef 01.04.2014 is given below:-
tax 'N' accounts people
Tarun Kumar Gupta
Life style Post