• An individual can open only one account besides his GPF account.
• Option to pay each contribution in one Iumpsum p.a. or in 12 installments.
• Period: 15 yrs.(Min. 16 annual contributions). Can be contd. Further every 5 yrs.
• Any individual can open an account singly or jointly.
• More than one account can be opened without any limit.
• Account can be opened for 1,2,3 and 5 years.
• Interest for 5 years deposit is 8.4%
• Premature withdrawal after 1 year attracts 2% penalty on interest applicable.
• Amount withdrawn before 5 years period, tax will have to be paid on the withdrawn amount treating it as the income of that year.
• Tax Exemption: Only 5 years term deposit with a Max. Investment of Rs. 1.5 Iakh eligible u/s 80C. | 