National Saving schemes under revision
Committee on National Small Saving Funds (NSSF) is reviewing national saving schemes. Below changes will be effective after their confirmations.
- Maximum limit of saving money into PPF (Public Provident Fund) has risen from 70k to 1 lac. This saving comes under income tax rule 80C.
- Interest rate of Post office savings may be raised from 3.5 percent to 4 percent.
- Saving Scheme Kisan Vikas Patra(KVP) may be discontinued and it may be replaced with NSC(National Saving Certificate) with locking period of ten years.
- Maturity Period of Monthly Income Plan and NSC may be reduced to five years. Returns on this may vary with fresh rate of interests yearly. Interest earned on NSC is taxable.
Categories: Personal finance