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| « MNCs on alert on Rolls I-T ruling... | Tax collections record unprecedented growth: Chidambaram... » |
Govt offers bonus, tax relief on PO savings |
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| December, 08th 2007 |
The government today announced a 5% bonus on new monthly post office deposits.
The bonus will be applicable for Post Office Monthly Income Accounts opened on or after December 8, the finance ministry said in a statement.
The government will also offer tax relief on deposits with a maturity of five years and senior citizen savings scheme, the statement said.
The measures are aimed at promoting post office small savings, which has been witnessing a sharp decline due to lower return and lack of tax benefit for most of the schemes.
There has been a demand from different sections for restoring the element of bonus on monthly post office savings. There has also been a demand that the Five Year Post Office Time Deposit Account and the Senior Citizens Savings Scheme should enjoy the same tax treatment as is applicable to five year bank deposits. |
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