look news india
National Saving Scheme: Keeping in mind the financial security of depositors and their future generations, those who invested in the National Savings Scheme 37 years ago have been instructed to withdraw all their money after September 30, 2024. If this amount is not withdrawn then instructions are being given to stop paying interest on it. Every taxpayer investing in NSS needs to have his/her KYC. It is necessary to keep. An updated information has been given. However, this scheme has been discontinued since 2002.
KYC by going to post office. After updating, they are given verbal information that if they do not withdraw their deposit after 30th September then they will not be given interest after 30th September. This scheme, started in 1987, was discontinued in 1992. Subsequently, the NSS scheme, which was relaunched in 1992, was discontinued in 2002, but interest continued to be paid. Therefore some taxpayers withdrew the investments of this scheme and closed the accounts shown in the income of that year and deposited the tax. However, some depositors let their money go away. These accounts are still active today.
National Savings Scheme Taxpayer Rs. About 40,000 were allowed to stop. The amount withheld is deducted from the investor's income under Section 80 of the Income Tax Act. Taxpayers are allowed to withdraw their deposits and the interest earned on it in subsequent years of investment. There was a lock-in period of four years. When NSS was started, 11 percent interest was given. With time the interest on it was reduced to 7.5 percent. The rules changed from July 12, 2024.
As per the rules, the amount invested in NSS becomes taxable in the year it is withdrawn. If the taxpayer does not withdraw that amount, no income tax is levied on the amount credited to his account as interest. If this amount is withdrawn by his heirs, the entire withdrawal amount is considered tax free. In other words, if after the death of the investor, his heirs withdraw the amount, then there is no tax on it. Many hosts continued to maintain their accounts with the same calculations. There have been important changes in it from July 12, 2024.
In accordance with this change, it was decided to continue paying interest at the prevailing rate of the scheme to those opening the first account under the first NSS scheme of 1987. It was decided to pay six per cent interest on Post Office Savings Account and 200 basis points on the balance in the account on the latter account. This arrangement was implemented only for the period from July 2024 to September 30, 2024.
It was decided not to pay interest on the third account or any other account. It has also been decided not to pay any interest on third or any other irregular account. Only their principal amount will be returned to investors. No interest will be paid on all NSS accounts from October 1, 2024. Therefore, it would be futile to continue those accounts. There is resentment among the owners due to this decision of the government.