Home Acts & Rules Direct Taxes Rules National Savings Certificates (IX-Issue) Rules, 2011 This
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Rule 16 - Premature encashment - National Savings Certificates (IX-Issue) Rules, 2011Extract 16. Premature encashment, - (1) Notwithstanding anything contained in rule 15 and subject to sub-rules (2), (3) and (4), a certificate may be prematurely encashed in any of the following circumstances, namely:- (a) on the death of the holder or any of the holders in case of joint holders; (b) on forfeiture by a pledge being a Gazetted Government Officer when the pledge is in conformity with these rules; or (c) when ordered by court of law. (2) If a certificate is encashed under sub-rule (1) within a period of one year from the date of the certificate, only the face value of the certificate shall be payable. (3) If a certificate is encashed under sub-rule (1) after expiry of one year but before the expiry of three years from the date of certificate, the encashment shall be at a discount. On encashment of the certificate, an amount equivalent to the face value of the certificate together with simple interest shall be payable. Such simple interest shall be calculated on the face value at the rate applicable from time to time to single accounts under the Post Office Savings Account Rules, 1981, for the complete months for which the certificate has been held. The difference between the aforesaid simple interest and the interest accruing under rule 15 shall be deemed to be the discount. (4) If a certificate is encashed under sub-rule (1) after the expiry of three years from the date of the certificate, the amount payable inclusive of interest accrued under rule 15 and after adjustment of discount, shall be as specified in the Table below for a certificate of ₹ 100 denomination and at a proportionate rate for a certificate of any other denomination. TABLE Period from the date of the certificate to the date of its encashment Amount payable inclusive of interest (Rs) (1) (2) 3 years or more, but less than 3 years and 6 months 123.14 3 years and 6 months or more, but less than 4 years 127.49 4 years or more, but less than 4 years and 6 months 131.99 4 years and 6 months or more, but less than 5 years 136.65 5 years or more, but less than 5 years and 6 months 143.81 5 years and 6 months or more, but less than 6 years 149.13 6 years or more, but less than 6 years and 6 months 154.65 6 years and 6 months or more, but less than 7 years 160.37 7 years or more, but less than 7 years and 6 months 166.30 7 years and 6 months or more, but less than 8 years 172.46 8 years or more, but less than 8 years and 6 months 178.84 8 years and 6 months or more, but less than 9 years 185.46 9 years or more, but less than 9 years and 6 months 192.32 9 years and 6 months or more, but less than 10 years 199.43
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