Friday, August 6, 2010

Senior citizens Savings Scheme - Revised Rule - In case of death - July 2010

This amended rule should be informed to your kith & kin, especially to
the Nominee of SCSC 2004, though you may not need to know it yourself!
Incidentally have you filed your nomination? If not please do.

Senior Citizens Savings Scheme (Amendment) Rules, 2010 – Amendment in rule 8
Aug 5, 2010 Income Tax

Notification No. G.S.R. 639(E), Dated 28-7-2010
In exercise of the powers conferred by Section 15 of the Government
Savings Banks Act, 1873 (5 of 1873), the Central Government hereby
makes the following rules to further amend the Senior Citizens Savings
Scheme Rules, 2004, namely : –

(1) These rules may be called the Senior Citizens Savings Scheme
(Amendment) Rules, 2010.

(2) They shall come into force on the date of their publication in the
Official Gazette.
In the Senior Citizens Savings Scheme Rules, 2004 in rule 8, for
sub-rule 3 the following sub-rule shall be substituted, namely : –

(3) In case of death of a depositor before maturity, the account shall
be closed and deposit refunded on an application in Form 'F' alongwith
interest as applicable to the scheme till the date on which the
depositor expired, to the nominee or legal heirs in case the nominee
has also expired or nomination as provided in rule 6 was not made, as
the case may be. For the period between the day following the date of
death of the depositor and the date on which refund is made, simple
interest shall be paid at the rate applicable from time to time to
saving accounts as provided in Rule 6 of Post Office Savings Accounts
Rules, 1981".

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1 comment:

  1. Dear Sir, Kindly clarify whether the three Provisos to the Original Rule 8, Sub-rule (3) are deleted by the Amndment, If so, even the joint account shall be closed on the premature death of the depositor and payment refunded to the Nominee/Legal hier, and NOT be continued in the name of the Joint Holder. Will this not be in contradict thee Rule 6-(4), which says that Nomination can be made in case of the Joint Account also, however the claim of the Nominee will arise only after the death of the Depositor and the Joint Holder? Pl Advise to