TaxTMI 
TaxTMI 
National Savings Certificates (IX-Issue) Rules, 2011
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....being in force; (v) "Form" means form appended to these rules and also includes forms as prescribed by the Department of Posts; (vi) "Government Company" means a company as defined in section 617 of the Companies Act, 1956 (1 of 1956); (vii) "Local Authority" means a municipal corporation, municipal committee, district board, Body of port commissioners or other authority legally entitled to or entrusted by the Government with the control or management of municipal or local fund; (viii) "Old Certificate" means a certificate issued under any of the earlier issues of National Savings Certificates; (ix) "Post Office" means any departmental post office in India doing Savings bank work and such other post office as is authorised by the Department of Posts; 3. Denominations in which certificates shall be issued,-The National Savings Certificates (IX Issue) shall be issued in denominations of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000, Rs. 10000 and such other denominations as may be notified by the Central Government from time to time. 4. Types of Certificates and Issue thereof,- (1) The certificates shall be of the following types, namely:-....
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....s specified in sub-rule (1) or sub-rule (2), as the case may be. 9. Certificate in lieu of proceeds of old certificate,- A holder of an old certificate entitled to encash that certificate may make an application in Form 1 for the grant of a certificate under these rules; on receipt of such an application, there shall be issued to the applicant a certificate under these rules, the date of issue being the date on which the old certificate duly discharged is presented. 10. Transfer from one post office to another,- (1) A certificate may be transferred from a post office at which it stands registered, to any other post office on the holder or holders making an application in the prescribed form at either of the two post offices. (2) Every such application shall be signed by the holder or holders of the certificate: Provided that in the case of Joint 'A' Type certificate or a Joint 'B' Type certificate, the application may be signed by one of the joint holders if the other is dead. 11. Transfer of certificate from one person to another,-(1) A certificate may be transferred with the previous consent in writing of an office of the post office ....
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.... in writing, that the minor is alive and that such transfer is in his interest. (4) In every case of transfer, other than a transfer under rule 12, the original certificate shall be duly discharged and the new certificate bearing the same date as that of the original certificate surrendered shall be issued in the name of the transferee. 12. Pledging of certificate,- (1) On an application being made in the prescribed form, by the transferor and the transferee, the Postmaster of the office of the registration may, at any time, permit the transfer of any certificate as security to- (a) the President of India or Governor of a State in his official capacity; (b) the Reserve Bank of India or a scheduled bank or a cooperative society including a cooperative bank; (c) a corporation or a Government company; and (d) a local authority: Provided that the transfer of a certificate purchased on behalf of a minor shall not be permitted under this sub-rule unless the parent or the guardian of a the minor referred to in sub-clause (i) or as the case may be sub-clause (ii), of clause (b) of section 5 of the Act certi....
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....issued under sub-rule (5) shall be treated as equivalent to the certificate in lieu of which it has been issued for all purposes of these rules. 13. Replacement of lost or destroyed certificate,- (1) If a certificate is lost, stolen, destroyed, mutilated or defaced, the person entitled thereto may apply for the issue of a duplicate certificate to the post office where the certificate is registered or to any other post office in which case the application will be forwarded to the post office of registration. (2) Every such application shall be accompanied by a statement showing particulars, such as number, amount and date of the certificate and the circumstances attending such loss, theft, destruction, mutilation or defacement. (3) If the Officer in charge of the post office of registration is satisfied of the loss, theft, destruction, mutilation or defacement of the certificate, he shall issue a duplicate certificate on the applicant furnishing an indemnity bond in the prescribed form with one or more approved sureties or with a bank's guarantee: Provided that where the face value or the aggregate face value of the certificate or certificates lo....
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....of certificates registered on different dates. (6) The nomination or the cancellation of a nomination or the variation of a nomination shall be effective from the date it is registered in the post office, which shall be noted on the certificate. 15. Encashment on maturity,- The maturity period of a certificate of any denomination shall be ten years commencing from the date of the certificate. The amount, inclusive of interest, payable on encashment of a certificate at any time after the expiry of its maturity period shall be Rs. 234.35 for denomination of Rs. 100 and at proportionate rate for any other denomination. The interest specified in the Table below shall accrue to the holder or holders of the certificate at the end of each year and the interest so accrued at the end of each year up to the end of the ninth year, shall be deemed to have been re-invested on behalf of the holder and aggregated with the amount of face value of the certificate. TABLE The year for which interest accrues Amount of interest (Rs.) accruing on certificate of Rs. 100 denomination (1) (2) First Year 8.89 Second Year 9.68 Third Year 10.54 Fourth Year 11....
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....s or more, but less than 5 years 136.65 5 years or more, but less than 5 years and 6 months 143.81 5 years and 6 months or more, but less than 6 years 149.13 6 years or more, but less than 6 years and 6 months 154.65 6 years and 6 months or more, but less than 7 years 160.37 7 years or more, but less than 7 years and 6 months 166.30 7 years and 6 months or more, but less than 8 years 172.46 8 years or more, but less than 8 years and 6 months 178.84 8 years and 6 months or more, but less than 9 years 185.46 9 years or more, but less than 9 years and 6 months 192.32 9 years and 6 months or more, but less than 10 years 199.43 17. Place of encashment,- A certificate shall be encashable at the post office at which it stands registered: Provided that a certificate may be encashed at any other post office if the officer-in-charge of that post office is satisfied on verification from the office of its registration that the person presenting the certificate for encashment is entitled thereto. 18. Discharge of certificate,- (1) The person entitled to receive the amount due under a certificate shall, on its encashment,....
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....(2) (i) Time Scale Departmental Sub-Postmasters 1,000 (ii) Sub-Postmaster in Lower Selection Grade 2,000 (iii) Sub-Postmasters/Deputy Postmasters/Postmaster in Higher Selection Grade (All Non Gazetted) 5,000 (iv) Deputy Postmasters/Senior Postmasters/Deputy Chief Postmasters/Superintendent of Post Offices/Deputy Superintendent of Post Offices (All Gazetted Group-B) 20,000 (v) Chief Postmaster in Head Offices, Senior Superintendents of Post Offices (All Gazetted Group-A) 50,000 (vi) Regional Directors/Director (General Post Offices)(in Mumbai and Kolkata) 75,000 (vii) Chief Postmasters General/Postmasters General (Headquarter and Region) 1,00,000 21 Encashment of Certificates held by Army, Air Force and Navy Personnel,-Where a certificate is held by a person who is subject to the Army Act, 1950 (46 of 1950) or the Air Force Act, 1950 (45 of 1950) or the Navy Act, 1957 (62 of 1957), and such person dies or deserts, the Commanding Officer of the Corps, department, unit or ship to which the deceased or deserter belonged or the Committee of Adjustment, as the case may be, may send a requisition to the officer-in-charge of....
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....ot the date on which the exchange is made. 24. Income Tax-Interest on these certificates shall be liable to tax under the Income-tax Act, 1961 (43 of 1961), on the basis of the annual accrual specified in rule 15, but no tax shall be deducted at the time of payment of discharge value. 25. Fees-(1) A fee of rupees five shall be chargeable in respect of the following transactions, namely:- (i) transfer of certificate from one person to another other than a transfer from the holder to a court of law or under the orders of court of law; (ii) issue of duplicate certificate under rule 13; (iii) issue of a certificate of discharge under rule 18; (iv) conversion from one denomination to another under rule 23. Explanation,-The fee to be charged for a conversion under clause (iv) shall be based on the number of the certificates required to be issued on such conversion. (2) A fee of rupees five shall be chargeable on every application for registration of nomination or of any variation in nomination or cancellation thereof: Provided that no fee shall be charged on an application for registration of the first nomination. 26. Responsibility of the Post Office,-....
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.... Authority No. . . . . . . . . . . . . . . or messenger who presents the application. Signature/Thumb impression of Investor Signature and address of Witnesses to nomination Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Address. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Received the certificate(s) Delete whichever is not applicable Signature of Investor/messenger/authorised agent. Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. TO BE COMPLETED BY THE POST OFFICE S.No. of Certificates Issue Price (Rs.) Date of encashment Initials of the Postmaster Remarks like transfer, issue of duplicate, etc. with initials Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Signature of Head/Sub Postmaster FORM-2 DEPARTMENT OF POSTS [See Rule 14(1)] Serial No. . . . . . . . . . . . . . . . . . . . FORM OF APPLICATION FOR NOMINATION UNDER SECT....
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.... GOVERNMENT SAVINGS CERTIFICATES ACT, 1959 (This form will be filled in by the holder/s and submitted with the certificates to the Postmaster of the office where the certificate stands registered) To The Postmaster Sir, Under provisions of Section 6(1) of the Government Savings Certificates Act 1959, I/We . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .the holder(s) of Savings Certificates detailed below, hereby cancel the nomination previously made by me/us in respect of these certificates and registered in your office under No. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .dated. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . *In place of the cancelled nomination. I/We hereby nominate the person/s mentioned below, who shall, on my/our death become entitled to the savings certificates and be paid the sum due thereon to the exclusion of all other persons. Sl. No. Name of the nominee(s) Full Address Date of birth of nominee in case of minor *To be filled in case of variation only. 2. As the nominee(s) at serial number(s). . . . . ....