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| LIC OF INDIA |
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Chairman’s Club Member
Since 2006 |
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Continuous 17 Times
MDRT - USA |
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MDRT-USA (Life Member) |
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COT - USA (2015) |
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Galaxy Club Member (2015) |
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Corporate Club Member - (2015) |
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Star Health & Allied
Insurance. co. ltd. |
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Zonal Club Member (2015) |
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ED Club Member (2016) |
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HIRT - Platinum Member (2016) |
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Premier Club Member |
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SCHEMES (INDIA POST) |
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| Kisan Vikas Patras is a safe and long term investment option backed by the Government of India which provides interest income similar to bonds. The title of the scheme makes some misconception that it is only meant for farmers. But anyone can go for Kisan Vikas Patra. KVP is beneficial for those looking for a safe avenue of investment without the pressing need for a regular source of income. Money doubles at the end of specified period. |
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How to invest ?
Kisan Vikas Patra is available in all head post offices and other Authorized post offices throughout India. After filling up the prescribed form and submitting money, the certificate will be issued after the realization of cheque, pay order or DD. The post office will issue an identity slip along with the certificate. This signed identity slip will help the purchaser to get a duplicate certificate from loss of the same and also assures the smooth encashment of certificate on maturity.
Who can Invest ?
Kisan Vikas Patra can be purchased by any adult individual singly or jointly, minor through guardian or a registered trust where commercial companies, societies, institutes or NRIs and Hindu Undivided families are not eligible to purchase KVP.
Minimum investment and range of investment in KVP:
The minimum investment in KVP is Rs 100. Certificates are available in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000, Rs 10,000 and Rs 50,000. The denomination of Rs 50,000 is sold through head post offices only. There is no limit on holding of these certificates. Any number of certificates can be purchased. A KVP is sold at face value; the maturity value is printed on the Certificate.
Maturity amount and period:
The post-office Kisan Vikas Patras (KVPs) offers a fixed rate of interest, currently at 8.41 (2009) per cent per annum compounded half yearly which are subject to vary. The maturity period is 8 years and 7 months and Money doubles on maturity. Encashment is possible from two and half years. There is facility to reinvest the amount on maturity.
Tax Benefits:
No income tax benefit is available under the Kisan Vikas Patra scheme. Interest income is taxable, however, the deposits are exempt from Tax Deduction at Source (TDS) at the time of withdrawal. KVP deposits are exempt from Wealth tax.
Salient Features:
KVPs can be pledged as a security against a loan
It can be transferable to any post offices in India
KVPs can be transferable to one person to other before maturity.
Nomination Facility is available.
Loss of Certificate:
In the case of loss or stolen Certificate, the purchaser should report the post office at the earliest. An application should submit in post office containing the certificate number, amount, date of purchase /maturity etc. and declare the circumstances resulting the loss of certificate. In such cases the identity slip comes useful to get a duplicate certificate. After the verification, the post office will issue a duplicate certificate. If needed, the purchaser will have to submit an indemnity bond/declaration/Bank verification. |
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| National Savings Certificates (NSC) are certificates issued by Department of post, Government of India and are available at all post office counters in the country. This scheme is specially designed for Government employees, Businessmen and other salaried classes who are IT assesses. It is a long term safe savings option for the investor. |
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Trust and HUF cannot invest. The scheme combines growth in money with reductions in tax liability as per the provisions of the Income Tax Act, 1961. The duration of a NSC scheme is 6 years.
Features
NSCs are issued in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000 for a maturity period of 6 years. There is no prescribed upper limit on investment.
Individuals, singly or jointly or on behalf of minors and trust can purchase a NSC by applying to the Post Office through a representative or an agent.
One person can be nominated for certificates of denomination of Rs. 100- and more than one person can be nominated for higher denominations.
The certificates are easily transferable from one person to another through the post office. There is a nominal fee for registering the transfer. They can also be transferred from one post office to another.
One can take a loan against the NSC by pledging it to the RBI or a scheduled bank or a co-operative society, a corporation or a government company, a housing finance company approved by the National Housing Bank etc with the permission of the concerned post master.
Though premature encashment is not possible under normal course, under sub-rule (1) of rule 16 it is possible after the expiry of three years from the date of purchase of certificate.
Tax benefits are available on amounts invested in NSC under section 88, and exemption can be claimed under section 80L for interest accrued on the NSC. Interest accrued for any year can be treated as fresh investment in NSC for that year and tax benefits can be claimed under section 88.
Investment up to Rs. 1,00,000/- per annum qualifies for IT Rebate under section 80C of IT Act.
Return
It is having a high interest rate at 8% compounded half yearly. Post maturity interest will be paid for a maximum period of 24 months at the rate applicable to individual savings account. A Rs1000 denomination certificate will increase to Rs. 1601 on completion of 6 years.
Interest rates for the NSC Certificate of Rs 1000
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| Year |
Rate of Interest |
| 1 year |
Rs 81.60 |
| 2 year |
Rs 88.30 |
| 3 year |
Rs 95.50 |
| 4 years |
Rs103.30 |
| 5 years |
Rs 111.70 |
| 6 years |
Rs 120.80 |
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Advantages
Tax benefits are available on amounts invested in NSC under section 88, and exemption can be claimed under section 80L for interest accrued on the NSC. Interest accrued for any year can be treated as fresh investment in NSC for that year and tax benefits can be claimed under section 88. NSCs can be transferred from one person to another through the post office on the payment of a prescribed fee. They can also be transferred from one post office to another. The scheme has the backing of the Government of India so there are no risks associated with your investment.
How to start?
Any individual or on behalf of minors and trust can purchase a NSC by applying to the Post Office through a representative or an agent. Payments can be made in cash, cheque or DD or by raising a debit in the savings account held by the purchaser in the Post Office. The issue of certificate will be subject to the realization of the cheque, pay order, DD. The date of the certificate will be the date of realization or encashment of the cheque. If a certificate is lost, destroyed, stolen or mutilated, a duplicate can be issued by the post-office on payment of the prescribed fee. |
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| A Post-Office Recurring Deposit Account (RDA) is a banking service offered by Department of post, Government of India at all post office counters in the country. The scheme is meant for investors who want to deposit a fixed amount every month, in order to get a lump sum after five years. |
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The scheme, a systematic way for long term savings, is one of the best investment option for the low income groups.
Features
The minimum investment in a post-office RDA is Rs 10 and then in multiples of Rs. 5/- for a period of 5 years. There is no prescribed upper limit on your investment.
The deposit shall be paid as monthly installments and each subsequent monthly installment shall be made before the end of the calendar month and shall be equal to the first deposit. In case of default in payment, a default fee is chargeable for delayed deposit at 0.20 Paise per month of delay, for Rs.10 Denomination. After more than four defaults, the account shall be treated as discontinued in case the account is not revived within two months from the fifth default.
For Advance deposits for 6 months or 12 months, a rebate is allowed at the prescribed rate (For Rs 10 denomination:- Rs.1/- for 6 advance deposits, Rs.4/- for 12 advance deposits.
One withdrawal is allowed after one year of opening a post-office RDA on meeting certain conditions. You can withdraw up to half the balance lying to your credit at an interest charged at 15%. The withdrawal or the loan may be repaid in one lump or in equal monthly installments.
Premature closure is allowed on completion of three years from the date of opening and in such case, interest is payable as per the rate applicable for the Post Office Savings Bank Account.
After maturity of the account, it can be continued for a further period of 5 years with or without further deposits. During this extended period, the account can be closed at any time.
Now Pay Roll Savings Scheme is also available for employees of various Establishments.
Returns
The post-office recurring deposits offers a fixed rate of interest, currently at 7.5 per cent per anum compounded quarterly. |
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| Monthly |
Total Investment(60months) |
30Money returned on Maturity
(after 60 months) |
| 10 |
600 |
728.90 |
| 20 |
1200 |
1457.80 |
| 50 |
3000 |
3644.50 |
| 100 |
6000 |
7289.00 |
| 500 |
30000 |
36445.00 |
| 1000 |
60000 |
72890.00 |
| 1375 |
82500 |
100224.00 |
| 5000 |
300000 |
364450.00 |
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Advantages
The post office offers a fixed rate of interest unlike banks which constantly change their recurring deposit interest rates depending on their demand supply position. As the post office is a department of the government of India, it is a safe investment. The principal amount in the Recurring Deposit Account is assured. Moreover Interest earned on this account is exempted from tax as per Section 80L of Income Tax Act.
How to Start Post
office RDA
A post-office RDA can be opened at any post office in the country by filling up the appropriate forms. The account can be opened by an individual adult as a single person account, two adults in a joint mode, or by a guardian on behalf of the minor who has attained the age of 10 years in his own name. A pass book is issued at the time of opening the account. If there is a loss, theft or the passbook is mutilated, a duplicate is issued on a charge. The deposit can be made personally at the particular post office every month or can be made through an appointed agent, who would collect the money from you and enter the same in your passbook. |
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Features
The minimum investment is 1000Rs and in multiples of Rs.1000 subject to a maximum of Rs.15 lakh.
Citizens of 60 years of age and above are eligible to invest. Single or joint account (with spouse only) can be opened. Citizens who have retired under a voluntary or a special voluntary retirement scheme and have attained the age of 55 years are also eligible, subject to specified conditions. In case of death of the depositor before maturity, the account shall be closed and deposit refunded without any deduction along with interest.
The deposit will carry an interest of 9% per annum (taxable). The maturity period of the deposit will be five years, extendable by another three years.
Premature withdrawal after a period of one year will be allowed, subject to some deductions.
The investments in the scheme will be non-tradable and non-transferable. However, nomination facility will be available.
Non-Resident Indians and Hindu Undivided Families are not eligible to invest in the scheme.
Returns
The deposit will carry an interest of 9% per annum (taxable).
Advantages
This Scheme is most beneficial to Senior citizens and provides a high rate of interest as compared to bank interest of 4.5- 4.75%. Although the interest on the deposit is taxable, the deposits themselves are tax free. As the post office is a department of the government of India, it is a safe investment. The principal amount is assured.
How to Start Post office Senior Citizens account
A Senior Citizen Account can be opened through any designated post office through out the country. The account can be opened by any individual 60 years of age and above either individually, or jointly (with spouse only). |
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| Deposit Rs |
Monthly Interest |
Amount returned on maturity |
| 5,000 |
33 |
5,000 |
| 10,000 |
66 |
10,000 |
| 50,000 |
333 |
50,000 |
| 1,00,000 |
667 |
1,00,000 |
| 2,00,000 |
1333 |
2,00,000 |
| 3,00,000 |
2000 |
3,00,000 |
| 6,00,000 |
4000 |
6,00,000 |
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What is Kisan Vikas Patras?
