Interest Rate of GPF for 3rd Quarter is 7.8%

GPF interest rate of 7.8% w.e.f. 1st October, 2017 to 31st December, 2017

General Provident Fund (GPF) and other similar funds shall carry interest at the rate of 7.8% w.e.f. 1st October, 2017 to 31st December, 2017. 

The Government of India has announced that during the Financial Year 2017-18, accumulations at the credit of subscribers to the General Provident Fund (GPF) and other similar funds shall carry interest at the rate of 7.8% (Seven point eight per cent) with effect from 1st October, 2017 to 31st December, 2017. This rate will be in force w.e.f. 1st October, 2017.

The Notification to this effect has been issued and published in the Gazette of India on 23rd October, 2017.

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GPF Interest Rate for 4th Quarter (2016-17) for Maharashtra State Employee.

Recently, Maharashtra Government has been announced GPF Interest Rates for 4th Quarter for Fin. Year 2016-17

It is announced for General Information that during the year 2016-2017, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 8% (Eight Per Cent) w.e.f. 1st January 2017 to 31st March 2017.  This rate will be in force w.e.f. 01st January 2017 as per notification dated 30th January 2017 of Maharashtra Government.

1. General Provident Fund (Madhyapradesh)
2. Patwarancha Provident Fund (Madhyapradesh)
3. Contributory Provident Fund (Madhyapradesh)
4. Compulsory Saving Scheme (Hyderabad)

Sd/-
(B.J. Gadekar)
Deputy Secretary,
Maharashtra Government

GPF Interest Rates for 4th Quarter

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How to skip TDS on bank fixed deposits ?

Banks have instructions to deduct tax at source on your fixed deposits, should they earn more than Rs.10,000 in a financial year. Here's how you can avoid it altogether.

A bank fixed deposit (FD) is the most popular Indian investment. It’s safe and the 9-10% returns we’ve seen for the past few years are great. But at the end of the day, all your returns are taxed. And if the interest you earn is over Rs.10,000 in one financial year (April to March), it is eligible for tax deduction at source 10.3 per cent of the interest earned. This is regardless of whether you should be paying any tax on it at all. But there are four ways around this:

Distribute the money: The banks can only tax your deposits at source if the interest earned over a financial year is Rs.10,000. The easy way around paying the tax, therefore, is to split the deposits between two banks. It is easy to open an FD in any bank now-a-days, so this is not as inconvenient as it may seem. So long as your interest is less than Rs.10,000 in one bank, you’re safe. Public sector banks do have a problem with you opening an FD if you don’t already have a savings account, but most private ones don’t.

Submit form 15G/15H: If your income is not taxable, the government says your income should not be taxed at source. For this, you need to submit a declaration. If you aren’t a senior citizen, you should submit 15G. This is a simple form that tells the bank that you aren’t liable to pay any tax on the FD, regardless of the amount of interest earned. If you’re a senior citizen without taxable income, the form you’ll need to submit is 15H.

Spread it over two years: In case of a one-time large fixed deposit, one option would be to split the interest over two years. For this, two things are essential – the first is that you would need to have the interest from the FD paid out cumulatively (every quarter or bi-annually). The second is that the investment should be made mid-year, if possible. Consequently, with the interest accrued over two financial years, TDS would not be deducted.

Accounts with different heads: This is one of the many tax advantages of having an HUF account. Despite investing your money here, it is treated as being under another head. Therefore, the two will be treated as separate, even if both are accounts at the same bank.

Source: CA Club India

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Interest Rate @ 9.1% for Investment in 'Sukanya Samridhi Account' During 2014-15

Recently, Hon'ble Prime Minister declared by Office Memorandum dated 20-01-2015 the Interest Rate on Investment in "Sukanya Samridhi Account" during Fin. Year 2014-15 is 9.1%.  The scheme of "Sukanya Samridhi Account" is specially for Girl Child which announcement by Finance Minister in his Budget Speech 2014-15.  The details is as under:

SUKANYA SAMRIDHHI ACCOUNT RULES, 2014 - RATE OF INTEREST TO BE ALLOWED ON INVESTMENTS IN SAID SCHEME DURING FINANCIAL YEAR 2014-15

OFFICE MEMORANDUM [F.NO. 2/3/2014.NS-II], DATED 20-1-2015

Subject: Launch of scheme for Girl Child named "Sukanya Samridhhi Account" by Hon'ble Prime Minister - rate of interest reg.

In compliance of announcement by Finance Minister in his Budget Speech 2014-15 the Government of India has introduced a new scheme named "Sukanya Samridhhi Account" vide Notification No.GSR No.863(E), dated 2nd December, 2014. It has been decided to allow 9.1% rate of interest on investments in the scheme during the financial year 2014-15.

This has the approval of Union Finance Minister.

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Interest Rate reduces by RBI on Special Deposit Schemes

Recently, Reserve Bank of India has declared on 12th December, 2014 that the Interest Rate reduces on Special Deposit Scheme 1975 from 8.8% to 8.7%. This reduced interest rate will effect from 01st January, 2014 to 31st December, 2014.  This is great loss of Special Deposit Schemes account holders during the calendar year 2014.

In this connection, we advise that interest for the calendar year 2014 may be promptly disbursed to the SDS account holders @ 8.7% per annum from January 01, 2014 to December 31, 2014 through electronic mode such as ECS/NECS/ NEFT/RTGS or by way of account payee cheques on January 01, 2015 itself, subject to instructions, as applicable, contained in paragraphs 3 and 4 of our circular CO.DT.No.15.01.001/H-3527/2003-04 dated December 30, 2003.

Download Reduces Interest Rates on Special Deposit Schemes (SDS) Click Here.

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Interest Rates for Small Savings Schemes increased for the Financial Year 2014-15.

The Government of India Ministry of Finance has increased Interest rate on Small Savings Schemes of Post Office Department on popular schemes. Only because to competitive with Banks' FDR and Private & Public Sector Investment.

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 :

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How to calculate Interest u/s. U/S 234A, U/S 234B, U/S 234C & U/S 234D ?

The Income Tax Act provides for charging of interest for non- payment/short payment/deferment in payment of advance tax which is calculated as below:

INTEREST U/S 234A:
For late or non furnishing of return, simple interest @ 1% for every month or part thereof from the due date of filing of return to the date of furnishing of return, on the tax as determined u/s 143(1) or on regular assessment as reduced by TDS/advance tax paid or tax reliefs, if any, under Double Tax Avoidance Agreements with foreign countries.

INTEREST U/S 234B:
For short fall in payment of advance tax by more than 10%, simple interest @ 1% per month or part thereof is chargeable from 1st April of the assessment year to the date of processing u/s 143(1) or to the date of completion of regular assessment, on the tax as determined u/s 143(1) or on regular assessment less advance tax paid/ TDS or tax reliefs, if any, under Double Tax Avoidance Agreements with foreign countries.

INTEREST U/S 234C:
For deferment of advance tax. If advance tax paid by 15th September is less than 30% of advance tax payable, simple interest @ 1% is payable for three months on tax determined on returned income as reduced by TDS/TCS/Amount of advance tax already paid or tax relief, if any, under Double Tax Avoidance Agreement with forgiving contribution. Similarly, if amount of tax paid on or before 15th December is less than 60% of tax due on returned income, interest @ 1% per month is to be charged for 3 months on the amount stated as above. Again, if the advance tax paid by 15th March is less than tax due on returned income, interest @ 1% per month on the shortfall is to be charged for one month.

INTEREST U/S 234D:
Interest @ 0.5% is levied under this Section when any refund is granted to the assessee u/s 143(1) and on regular assessment it is found that either no refund is due or the amount already refunded exceeds the refund determined on regular assessment. The said interest is levied @ 0.5% on the whole or excess amount so refunded for every month or part thereof from the date of grant of refund to the date of such regular assessment.

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Deduction of Tax at Source-Interest Other Than Interest on Securities u/s. 194A of Notified Institution.

Income Tax Department has been issued a notification regarding Deduction of Tax at Source u/s. 194A for Interest other Than Interest on Securities for notified Institution vide Notification No. 4/2013 [F.NO.275/28/2012-IT(B)], Dated 24-1-2013 regarding Central Government hereby notifies the National Skill Development Fund.

SECTION 194A OF THE INCOME-TAX ACT, 1961 - DEDUCTION OF TAX AT SOURCE - INTEREST OTHER THAN INTEREST ON SECURITIES - NOTIFIED INSTITUTION

NOTIFICATION NO. 4/2013 [F.NO.275/28/2012-IT(B)], DATED 24-1-2013

In exercise of the powers conferred by sub-clause (f) of clause (iii) of sub-section (3) of section 194A of the Income-tax Act, 1961 the Central Government hereby notifies the National Skill Development Fund (PAN AABTN5824G) for the purpose of sub-clause (f) clause (iii) of sub-section (3) of said section.

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Interest Calculator for multy types of Loan Free Download.

In respect of loan Interest there are many calculators in many sites and on blogs also.  Although they are very useful and best but on the contrary they are for individual scheme.  Now, I develop multy scheme Interest Calculator for Salaried Employee and Other borrowers to Calculate their interest with EMI and Debited Principal Loan Amount.

Types of Loan:
1. Personal Loan,
2. Housing Loan,
3. Car Loan,
4. Education Loan,
5. Term Loan etc.

The device is crafted so as to provide you with the emi figure that one would be paying back to them every month.  It is recommended to take the help to calculator Interest on Personal, Housing Loan/Home Loan, Car Loan, Education Loan and Term Loan.

Download Interest Calculator for All Types of Loans (Click Here)

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Can we heavy withdrawals in cash, What says Income Tax law?

The retirement amount of Government/State Government Employee is comes in heavy amount and it directly transfer to Employee Account. Although, the employee is taxpayee.  But after retirement the huge amount credited in his account and thus it is Words of Caution that one precaution normally every tax payer should take. As far as possible, have a transaction by account payee cheques/instruments only. There is a penal consequences under section 269SS of the Income Tax Act-1961 if any person accepts the loan or deposits of Rs. 20,000/- or more otherwise than by an account payee instruments. Even amongst the family members the loan of Rs. 20,000/- or more in cash is prohibited.

In normal course, cash deposits are a matter of investigations & no special inquiry is carried out for the cash withdrawals. In the some specific case, there is nothing to worry or bother as source of fund is explainable. The withdrawals could be treated either in the capacity of an agent acting on behalf retired Employee for heavy transactions that could be treated as gift received. For the genuine transactions, the assessee should not get panic. The Income Tax Department in general is an assessee friendly.

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Reinvestment as Term Deposit, Interest Rate not change on Conversion of Term Deposit, Daily Deposit or Recurring Deposits.

As per Notification RBI/2012-13/334 RPCD.RRB.BC.No.52/03.05.33/2012-13 December 14, 2012 RBI instructed to All Regional Rural Banks no change in interest rate on reinvestment of Term Deposit, Interest Rate not change on Conversion of Term Deposit, Daily Deposit or Recurring Deposits.  The notification is as under:

Conversion of Term Deposits, Daily Deposits or Recurring Deposits for Reinvestment in Term Deposits by Regional Rural Banks

As per extant instructions on Interest Rates on Deposits, RRBs on request from the depositor, should allow closure of a term deposit, a deposit in the form of daily deposit or recurring deposit, to enable the depositor to immediately reinvest the amount lying in the aforesaid deposits with the same bank in another term deposit. RRBs are required to pay interest in respect of such term deposit without reducing the interest by way of penalty provided that deposit remains with the bank after reinvestment for a period longer than the remaining period of the original contract.

2. On a review of the extant regulatory norms, and in order to facilitate better Asset Liability Management (ALM), it has been decided to permit banks to formulate their own policies towards conversion of deposits with immediate effect.

Yours faithfully
(Beena Abdulrahman)
Deputy General Manager

Download Notification (Click Here)

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Post Office (Monthly Income Account) Amendment Rules, 2012 Increases Interest Rate as 8.50% w.e.f. 01.04.2012

POST OFFICE (MONTHLY INCOME ACCOUNT) AMENDMENT RULES, 2012 - AMENDMENT IN RULE 8

NOTIFICATION NO.GSR 322(E), DATED 25-4-2012

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 further to amend the Post Office (Monthly Income Account) Rules, 1987, namely:-

1. (1) These rules may be called the Post Office (Monthly Income Account) Amendment Rules, 2012.

(2) They shall deemed to have come into force on the 1st day of April, 2012.

2. In the Post Office (Monthly Income Account) Rules, 1987,—

(a) in rule 8, in sub-rule (1), after clause (i), the following clause shall be inserted, namely: -

"(j) 8.5 per cent per annum in respect of deposits made on or after the 1st day of April, 2012.".

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Latest NEFT (National Electronic Fund Transfer) Bank Charges applicable from 01.08.2012 by RBI.

RBI has declared maximum limit of NEFT Transactions which are applicable from 01st August 2012.  RBI suggest to all Bank's Customers to confirm the NEFT Charges before filing form of fund transfer transactions. NEFT is the one of most important facility to transfer of funds between one account to other's bank account. NEFT ransaction range is 1 to 2 Lakh rupees. Above this value RTGS will come into effect. Normally NEFT transactions charges are vary bank to bank.  Thus, the RBI has fixed the maximum charges for the NEFT fund transfer transaction according to the value of transactions and this regard RBI has issued a circular no. 98 dated 13-07-2012.

Value Band	Maximum Charges
	(exclusive of service tax)
Amounts up to ` 10,000/-	2.50/-
Amounts from ` 10,001/- to ` 1 lakh	5/-
Amounts above ` 1 lakh up to ` 2 lakh	15/-
Amounts above ` 2 lakh	25/-

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Revision of interest rates for small savings schemes.

Dear Visitors earlier we know that the small saving schemes rates has been revided from 01.11.2011 and now from 01.04.2012 the new revised Rate on Small Saving Schemes are declared by Ministry of Finance, Department of Economic Affairs (Budget Division) on 26th March 2012. The Office Memorandum as as below:

No.61/2011-NS-II(Pt.)
Ministry of Finance
Department of Economic Affairs
(Budget Division)
--------------------------------------------------------------------------

New Delhi, the 26th March, 2012

Office Memorandum

Sub: Revision of interest rates for small savings schemes.

The undersigned is directed to refer to Ministry of Finance's O.M. of even number dated 11th November, 2011, vide which the various decisions taken by the Government on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), were communicated to all concerned.

2. 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 rt April of that year. Accordingly, the rates of interest on various small savings schemes for the financial year 2012-13 effective from 1.4.2012, on the basis of the interest compounding/payment built-in in the schemes, shall be as under:

Schemes	w.e.f. 1.12.2011	w.e.f. 1.4.2012
Savings Deposit	4	4
1 year Time Deposit	7.7	8.2
2 year Time Deposit	7.8	8.3
3 year Time Deposit	8	8.4
5 year Time Deposit	8.3	8.5
5 year Recurring Deposit	8	8.4
5 year SCSS	9	9.3
5 year MIS	8.2	8.5
5 year NSC	8.4	8.6
10 year NISC	8.7	8.9
PPF	8.6	8.8

3. Necessary notifications, including these requiring amendments to rule of small savings schemes will be notified separately.

4. This has the approved of Finance Ministry.

Sd/-
(Shaktikanta Das)
Addl. Scretary of the Govt. of India.

Tags: Interest Rates, Interest Calculator, PPF Interest, GPF Interest, EPF Interest

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Notification regarding Post Office Time Deposit (Amendment) Rules, 2012.

As per notification No. GSR 323(E), dated 25.04.2012 the Central Government has amended the Post Office Time Deposit. The new amendment increase the Time Deposit Interest Rates. The Central government has declined the rate of interest on time deposit in post office. The below notification clarify new interest rates.

POST OFFICE TIME DEPOSIT (AMENDMENT) RULES, 2012 - AMENDMENT IN RULE 7
NOTIFICATION NO.GSR 323(E), DATED 25-4-2012

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 further to amend the Post Office Time Deposit Rules, 1981, namely:-
1. (1) These rules may be called the Post Office Time Deposit (Amendment) Rules, 2012.
(2) They shall deemed to have come into force on the 1st day of April, 2012.

2. In the Post Office Time Deposit Rules, 1981,-
(a) In rule 7,-
(A) under the heading Table-R, for the brackets, words, figures and letters "[For deposits made on or after the 1st December, 2011]", the brackets words, figures and letters,"[For deposits made on or after the 1st December, 2011 but before 1st day of April, 2012]" shall be substituted;

(B) after Table-R, the following Table shall be inserted, namely:-
"Table-S
[For deposits made on or after the 1st April, 2012]

Period	Rate of interest
1 Year	8.2
2 Years	8.3
3 Years	8.4
5 Years	8.5

(C) in the Notes, in paragraph (2), for the word and letter "Table R", the words and letters "Table R or Table S" shall be substituted.

Tags: Interest Calculator, PPF Interest Rate, GPF Interest Rate, CPF Interest Rates, EPF Interest Rates, PF Interest Rates.

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