Revision of Interest Rates for Small Savings Schemes for the Financial Year 2014-15 Announced
Various decisions taken by the Government of India on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), were communicated to all concerned by the Government through its Office Memorandum dated 11th November, 2011.One of the decisions of the Government based on the recommendations of the Committee relates to revision of interest rates every financial year, to be notified before 1st April of that year. Accordingly with the approval of the Finance Minister, the rates of interest on various small savings schemes for the Financial Year 2014-15 effective from 01.04.2014, on the basis of the interest compounding/payment built-in in the schemes, shall be as under :
| Scheme | Rate of interest w.e.f.01.04.2013 | Rate of Interest w.e.f. 1.04.2014 |
| 1. | 2. | 3. |
| Savings Deposit | 4.0 | 4.0 |
| 1 Year Time Deposit | 8.2 | 8.4 |
| 2 Year Time Deposit | 8.2 | 8.4 |
| 3 Year Time Deposit | 8.3 | 8.4 |
| 5 Year Time Deposit | 8.4 | 8.5 |
| 5 Year Recurring Deposit | 8.3 | 8.4 |
| 5 Year SCSS | 9.2 | 9.2 |
| 5 Year MIS | 8.4 | 8.4 |
| 5 Year NSC | 8.5 | 8.5 |
| 10 Year NSC | 8.8 | 8.8 |
| PPF | 8.7 | 8.7 |
The necessary notifications will be notified separately in this regard in due course.
Whether theses deposits are eligible for deduction from Taxable income u.s 80 C ? Whether interest on these deposits is Tax free u.s. 10 of the Income Tax Act? Whether the interest is cumulative or it is paid periodically say every year or 6 monthly ? Please clarrify.