Page 91 - DMGT515_PERSONAL_FINANCIAL_PLANNING

Personal Financial Planning

Notes (iii) A trust,
(iv) Two adults jointly,
(v) Hindu Undivided Family.
Where available?
Available for purchase/issue at Post Offices.

Maturity
Period of maturity of a certificate is six Years.
Nomination/Transferability
(i) Nomination facility is available.
(ii) Certificates can be transferred from one post office to any other post office.

(iii) Transfer from one person to another person permissible in certain conditions.
Denomination/Deposit Limits
Certificates are available in denominations (face value) of ` 100, ` 500, ` 1000, ` 5000 &
` 10,000. There is no maximum limit for purchase of the certificates.

Interest/maturity value
(i) With effect from 1st March, 2003, Maturity value a certificate of ` 100 denomination is
` 160.10.

(ii) Maturity value of a certificate of any other denomination shall be at proportionate
rate.
(iii) Interest accrued on the certificates every year is liable to income tax but deemed to
have been reinvested.
Premature Encashment
Premature encashment of the certificate is not permissible except at a discount in the case
of death of the holder(s), forfeiture by a pledgee and when ordered by a court of law.

Place of Encashment/Discharge on Maturity
Can be encashed/discharged at the post office where it is registered or any other post
office.

Income Tax Relief
(i) Income Tax rebate is available on the amount invested and interest accruing every
year under Section 88 of Income tax Act, as amended from time to time.
(ii) Income tax relief is also available on the interest earned as per limits fixed vide
section 80L of Income Tax, as amended from time to time.
5. Kisan Vikas Patra
Who can purchase?
(i) An adult in his own name or on behalf of a minor,

(ii) A minor,
(iii) A Trust,
(iv) Two adults jointly.

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