Recently RBI has published a notification No. RBI/2013-14/526 dated March 21, 2014 for Interest rates on most popular and atractive Income Tax Saving Schemes i.e. Public Provident Fund Scheme, 1968 (PPF Scheme, 1968) and Senior Citizens Savings Scheme, 2004 (SCSS, 2004). In small Tax Saving Schemes, small Investors earn interest on PPF savings and take Tax Benefit from Income Tax as same SCSS shemes also very useful for Sr. Citizens Taxpayee, even if their Taxable Income is less than Tax exemption limit of 10% slab.
Public Provident Fund Scheme, 1968 (PPF Scheme, 1968) and
Senior Citizens Savings Scheme, 2004 (SCSS, 2004) - Revision of interest rates
Please refer to our circular RBI/2011-12/359 dated January 20, 2012 regarding interest rates on small savings schemes, wherein it was indicated that as per Government’s decision on revision of interest on small savings schemes, the interest rates on various small savings schemes for every financial year will be notified by the Government before April 1st of that year.
The Government of India has now vide their Office Memorandum (OM) No. 6-1/2011-NS.II dated 4th March 2014, advised the rate of interest on various small savings schemes for the financial year 2014-15. Accordingly, the rates of interest on PPF, 1968 and SCSS, 2004 for the financial year 2014-15, effective from April 01, 2014, on the basis of the interest compounding/payment built-in in the schemes, will be as under:
Scheme
|
Rate of Interest w.e.f.
01.04.2013 |
Rate of Interest w.e.f. 01.04.2014
|
5 Year SCSS, 2004
|
9.2% p.a.
|
9.2% p.a.
|
PPF, 1968
|
8.7% p.a.
|
8.7% p.a.
|
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 :
