He can be reached at skukreja investitude. In a move which could disappoint many small savers here in India, Finance Ministry today decided to reduce interest rates on many of its small saving schemes, including Public Provident Fund PPF , Sukanya Samriddhi Yojana SSY , National Savings Certificate NSC and Senior Citizen Savings Scheme SCSS among others. These rates will be effective April 1, and will be subject to a quarterly revision based on a new formula to determine these rates.

Here you have the table having all the small saving schemes with their applicable interest rates and tax benefits for the next financial year Public Provident Fund PPF — Rate Cut from 8. PPF will earn you 8. However, interest rate on PPF continues to remain tax-exempt on maturity and investment up to Rs. Sukanya Samriddhi Yojana SSY — Rate Cut from 9.

But, there is still a gap of 0. Interest earned on Sukanya Samriddhi Yojana is also tax-exempt on maturity and investment up to Rs. Senior Citizens Savings Scheme SCSS — Rate Cut from 9. The interest earned on this scheme is taxable and subject to TDS as well. But, the investment made gets you a deduction of up to Rs.

Post Office Monthly Income Scheme POMIS — Rate Cut from 8. Following this rate cut, Post Office MIS will go out of favour with many of the investors.

National Savings Certificates NSCs — Rate Cut from 8. Now even 5-year NSCs will have a rate cut, from 8. Your investment in NSCs will keep giving you tax exemption under section 80C. Kisan Vikas Patra KVP — Tenure Raised from Months to Months — Your investment in KVP was promised to get doubled in months earlier. Effectively, this scheme will earn you 7.

Impact of Rate Rationalisation on Small Savers, Borrowers and Indian Economy. Why am I saying this? This move will send the right signals to the global investors as well as to the Reserve Bank of India RBI that the government is serious about removing anomalies existent in our systems and also meeting its fiscal deficit target of 3.

This move, along with an expected rate cut by the RBI, is going to put more pressure on the lenders to cut lending rates in the system. It will also reduce the borrowing costs of the government, as well as many of the corporates which are currently burdened with high debt in their books. CPI Inflation, which matters to you and me the most and was ruling in double digits during the UPA tenure, has come down to 5.

WPI Inflation, which measures wholesale prices of goods and services, has been ruling in the negative zone for a very long time now. This fall in inflation is a result of a slump in the global commodity prices and crude oil prices. Small savers need to understand that interest rates on deposits and other investments have also come down in the last years.

So, effectively a fall of 1. If you compare this fall of 1. Rest I think it is very difficult to keep everyone happy in the country and at the same time, carry out economic reforms for an overall development. Ahead of polls in five states in April-May, I would call it a truly bold move by the government.

This act of rationalising interest rates will benefit the borrowers immensely, which in turn will create a right balance in the economy. Forced to buckle under pressure for his ill willed attempt to tamper EEE on EPF, now the Finance Minister took revenge on general Public by reducing int rates on providence funds and also, to frequently review them.

This Jaitly will be safe bet for Cong opposition to bring down Modi govt by Seems, thats his personal goal??? Suresh, Can you please let us know what personal goals does Mr. Jaitley have achieved by cutting these rates? That too, at the cost of getting a lower vote share by you people. It takes many years to build a country, but it takes only a few bad steps to destroy it.

Top Tax Saving Schemes - The Economic Times

This step is a wonderful move to rebuild our economy. We need to support it. It is not politics, it is simple economics. I dont care what jaitley Does whether right or wrong, He will get positive or negative result for that. Big thing is Bjp has stop Post Office Monthly Income Scheme. Many were shock yesterday as post office were no longer accepting Re deposit after their period was over For India Post Mis scheme.

Hi Irfan, That is not correct. Post Office MIS scheme is still running and will continue to exist even after March 31, Just think for once that before doing what Mr. Jaitley did, it would have been very simple for him to understand that lot of public criticism will follow.

But as the author rightly pointed out that yields on bonds have been falling since 2 years you can check yourself by looking at the rates offered on tax free bonds. Hence these rates were long due to be revised downwards.

Also we need to understand that inflation has come down. See we should not be stupid as investors to ignore that component. Lastly the move is not to save money for the government but to maintain prudent fiscal policies and channelizing of investments into development.

What if this cut of 0. We are bleeding money on those investments and we need money to be put in there. Still they chose to go ahead with it makes it a bold long termish move! I completely contradict your statement and thought…. As an individual citizen this rate cut in interest will have a big blow on me…. In future I will not make any investment in government..

Rate cut of 0. Best step that the goats should take is to take away all the money lying in ppf,mis,and other such schemes and distribute among industrialists like Mallya. This govt is not at all thinking how the poor pensioners will survive when there is no social security net available. And this needs money. Hope better sense prevail upon the existing rulers. I am a Senior Citizen and not a blind supporter of any leader.

But Modi ji is the best leader. I do not agree to some of his actions. Bullet train and purchase of 36 Rafale planes etc But I support the reduction in interest rate. I have explained my views in my comments. Senior Citizens and our school education are mainly responsible for the present condition.

They do not know the sufferings of the poor people. Most of the middle class families are small and a maximum two children. They want all kinds of luxury items. I do not blame them. I also felt of purchasing electronic gadgets at that age. People particularly commies are blaming industrialist for not repaying the loan.

It is not easy to run business in India so long commies are there in this country. But how many men in the middle class family have not repaid the money withdrawn through ATM cards. They think money is everything.

Old people want the company of their grand children. When people become old the out look to wards life will change. So the expenditure will come down. But expenditure towards medicine will go up. Only thing they must do is that they should save good amount to cover hospital charges if they become sick.

For that PPF is the best. Those Senior Citizens getting a yearly income Rs. If required they can withdraw half the amount after six years, So the decrease in interest rate is not going to affect the middle class family or Senior Citizens as projected by the media or the slaves of the Sonia Congress or CPI M party. I am able manage my life since I properly planning funds since the beginning. But what about people in Pvt firms drawing a meager salary which fulfills only their essential food, clothing and education needs that too with great difficulty.

Did he mean that the poor should not even think of giving good education to their children which is generally not there in most of the govt schools. Do Mr Govindan mean that recent amount of pension paid to all Category employees on retirement under the new pension scheme of EPF is 2 Lakhs per year as he assumes? May be he thinks of only highly paid employees group not a middle class or Govt employees who take at least double digit pension. Really for most of the retirees it never crosses above 1 Lakh.

Now at market price even drinking water during travel costs Rs. Govindan can expect people to save in PPF from pension amount. Reducing interest rates should be applicable only to the creamy layer people but not to one and all. Salary is also growing as well as pension. All of Indians want is there money to grow, country and its ppl are stupid idea, the poor sud die.

But in this country there are hardworking ppl like industrialists who have to earn livelihood for many , small labourers plus lots of unemployed youth for whom the leadership need to think. A country spends much than what it earns and it has to cut the expenses. You will get to know what is difference between these trusted government schemes and others. Hi Mr Shiv, Please help me understand how country is getting build by the government. Government is pulling money from public and putting it into banks or industrialist pockets corporate tax reduction.

Small saving are people money already with government that they take for 15 years. Reduction of interest rate should not be allowed on money deposited in earlier year. If I deposited in FT then that amount should continue to earn interest at 8. If they reduced interest to 8. By looking at corpus amount that people have saved and deposited with government, doing back calculation and figuring out saving is back stabbing. However this government is industrialist friendly and support bankers who wipe out lakhs of crs every year from system.

Paper currency gives government unlimited power and hope they would have utilized it to share country rich resources with people and not just with few chosen individuals. Wonder why banker who have already wiped crs are being trusted with being judicious this time in their loan grants. Government has to wake up and do things drastically different. From service class perspective life is no different and even government servant continue their lavish corrupt life-style..

That is good, but why someone will go for loan if the small saving schemes interest rates will give better return. They can do savings and fulfill their requirements at here own.

Many people who are criticizing the Govt. Those who are criticizing the Govt. Otherwise he has to pay Rs. From PPF a person will get an amount of Rs. After one year he will get Rs. If the interest is 8. From new financial years ownwords if any body invest in PPF he will get Rs. That means monthly a person will get Rs. At the same time for the Govt. Govindan, you are telling the reduced interest rates are very minimal and a Middle class person can sustain a loss of Rs.

I agree with you when Mr. Jaitly asks all the MPs to pay their electricity, Phone, fuel charges to be born by them but not the government not from so called, minimal Rs. Mallya is a middle class person in your view for whom Rs. Sir, I can not understand the rationale of ppf interest rate reduction. Government spends cr of Rs on wasteful spending every year. Industrialist in India manage to keep high prices of commodity in India.

Why these folks need government support. If we compare our interest rate with developed nation, then pls do compare social security, medicare and unemployment benefits as well.

People will have lesser money and food item inflation will continue in double digits. Has government hospitals operation shown improvement under NDA, are more medicine and care provided. Government plan are clearly not working. IT industry did empower common service class person but business sucked that capital by increasing cost of living around IT community.

I feel our politician have run out of ideas. They are not including additional people in gdp. Our gdp revolves around inflation and not volume growth. Government need to think and do some miracle to be reelected next time. Slashing Interest rate on PPF,Post office savings, Senior citizen saving scheme etc- is unfair. Why the FM put axe on the neck of poorer sector, the common man in India. Twenty-nine state-owned banks wrote off a total of Rs 1. Bleed the ones who pay tax even more!

That is not correct Dr. It is a move which would remove some of the anomalies in the system, we badly need to take such moves. No country in the world has so many small saving schemes and that too with such high rates. Even a growing country like China does not provide such high rates. Poor people do not pay any tax in this country. Poor people need work, employment and not subsidies.

Shiv, I politely disagree. Poor people do work hard, they are not leeches, they find it hard to survive these days. FM is indirectly telling the common man to use his tears as hair gel!!!!!

I respect your disagreement! Next three years of this government will tell whether this decision was good for the country or not. What is not correct? Is it correct that huge bank loan defaulters are left free to leave the country and common man has to bear the loss in the financial system? If the 2 lakh crore NPA is collected no need to burden the common man. Make new laws to recover the bad loans. Comparing with China is meaningless as the total environment of our country is different from foreign countries.

India is not equal to China in all aspects. We need other changes like banning 10 cars following a minister and many wasteful expenditures to revive the economy.

Govt thinks it is easy to get money form honest tax payers than from defaulters. Hi Santh, I agree with many of your views here. I think now is the time to act. Not only for the government, but we should also act. Why do we leave people like Mallya to leave his house? If the law cannot force him to pay up for KFA loans, I think the same law will free you as well if you do something unlawful with him. But, I agree that now is the time to act and the government has done it right by reducing interest rates on these small saving schemes.

Shiv, I totally disagree with what you have written. It should not be expected from common man to come on streets for recovering loans from defaulters.. I am not against BJP…but at the moment, there inaction is just a replica what cong has done over the years. General public is not holding them from preparing strict laws against these defaulters, then why only public has to face consequences of there inefficiency…He is a wilful defaulter from so many months..

I am not denying that. People are ready to support govt decisions, provided they are not politically motivated…like 7th pay commission is a big hole in govt pocket.. Thanks Saurabh for expressing your views! The government also cannot order his arrest for what he has done. I am sure you would not agree with me on this, as most of the Indians. That is where the bankruptcy law is required and this government is already working very hard to get it passed — http: Go outside and check what all this government is doing on the ground level.

Talk about the social welfare schemes started by this government, like Sukanya Samriddhi Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, Atal Pension Yojana, Make in India, Skill India and many other schemes. Has PM Modi started all these schemes for himself? He has not taken a single leave since taking over this challenging role of a PM. That too, in a country like India, where people give 80 seats to Lalu Yadav for the dramas he does on TV and make a leader like Jagmohan lose in elections and then get lost from the media limelight altogether.

Why you question only Mallya for still being an MP, why not Lalu Yadav, why not A Raja, why not Kanimozhi, why not so many other politicians? I agree with your views. Please read my comments and spread the right message where ever possible. Shiv, I think you know our laws. If a common man stops an individual, it is a crime. During UPA time major changes were made in the post office schemes.

What ever I am writing here is based on detailed study. If i am deposited Rs. This is a negligible amount. If you want to know more read my comments. This is a well written article , for a growing economy , one should have the mindset like the author of this article ,. Article is well written and understand the mindset of the author, but the common man is not mindless.

If the elected politician of our society cannot help the many who are poor, it cannot save the few who are rich. They will be paying the price in the coming elections.. That would again be a bad decision by the voters.

If the current government is not able to take this country in the right direction, then God knows what will happen when leaders like Lalu Yadav, Akhilesh Yadav, Mamata Banerjee, Rahul Gandhi, Kejriwal would rule this country. Shiv Kukreja Please do not quote the names of political leaders. It proves you are also biased. Main responsibility lie on politicians and the media.

Majority of them and their followers do not know how to calculate simple interest.

Post Office Small Savings Schemes – FY Interest Rates – PPF @ % & Sukanya Samriddhi Yojana @ %

They make comments without any study, Without basic mathematics there is no economics. Most of the politicians particularly commies are liars. To know more about interest rate read my comments. Hi Debasis, Except PPF and Sukanya Samriddhi Yojana SSY , it will not affect any of your past investments, including MIS and NSC.

What about Senior Citizen Saving Sceheme. If I had put money in Jan say 15 lacs. Will it continue to fetch 9. It will be applicable to new Accounts. Hi Mohanan, Banks did not cut interest rate aggressively due to high interest rates elsewhere.

Tax-Free Bonds and post office schemes carried artificially high interest rates so far, which increased the effective cost of deposits for banks. Now, tax-free bonds are history and interest rates on these schemes have been rationalised somewhat. Next months will result in high credit offtake for these banks and will increase corporate spending for newer projects.

Also, I can guarantee you that India is one of the cheapest countries to live in as far as the cost of living is concerned. Firstly, the government was required to meet its fiscal deficit target of 3.

I think it was a good move. Moreover, I think, in a country like India, the prices of Petrol should be increased by at least Rs. Price of diesel should also be increased as diesel vehicles create a lot of pollution.

Every penny of this rate hike should be given to organisations like Delhi Metro for creating public infrastructure. India needs to take some harsh decisions to become a superpower and compete with countries like China and the U. It is Now or Never my friend! All senior citizens who do not get pension will suffer very badly. Are u really going in market to purchase.

Neeta peya has gone up from rs Four to rs. By the grace of God, I am perfectly fine Mr. Yesterday itself, I purchased 2 kgs. FYI, I live in Lajpat Nagar, New Delhi. You will definitely save a lot of money for your retirement years. Its funny how people want low interest rates for their loans and want higher interest rates for their savings….

There are a bunch of free loaders in our country who want the govt to baby feed them all the time!!! Cutting down PPF interest rate is very bad idea. I have been supportive of govt efforts so far, but it seems the Babus so called Economists specially inducted in to finance ministry are misleading the govt.

Treatment PPF at par with all other products is a foolish act. Govt already taken a U-turn in case of EPF withdrawal issue, hope better sense prevails again. Hi Vasu, For retirement, one should invest in NPS or EPF or probably equity mutual funds. PPF always had a special status and continue to have a special status by being an EEE scheme. Interest rates on PPF, SSY and SCSS are still subsidised even after this reduction. The government in this country cannot be against its people, at least in the public domain.

You are an educated person. Education is not only meant for getting a job but also to find out what is good and bad. You may read my comments.

I have already invested in SCSS in Jan with the interest rate 9. Will this investment affect due to yesterdays declaration of reduction of interest rates from 1st April? Will I continue to get interest at 9. Govt does not mean that it is for business and generating rvenue. They have to consider all section of people. Poor, middle and upper class for their well being.

Hi Srinivasan, Inflation is calculated considering most of these factors. I think a government should always work like a company i. It must be made accountable for every rupee spent on infrastructure and for growth. People have been looted here for years by the previous governments and many of the state governments. Now is the time to work for a better India. As you told, we raised our voice and brought change of guard in last lok sabha elections. However if current govt does not make any difference with previous govts it is frustrating.

When MMS took over as fin minister he told people should be ready to take bitter pills. If a patient has to take more and more bitter pills than food every year for 25 years, the patient will think why should he live?

Hi Srinivasan, Differences in opinion are most welcome here on this forum! If people are not ready to take bitter pills for better health, they should keep themselves fit on their own. Hi Shiv, As you are a wise financial planner, you may write an article and advice average middle class people like me what are the best options available for right investment road to take at the current scenario, say from 1st April onwards.

Now TFBs are the thing of past, what about corporate FDs, Bank FDs,Gold funds,MFS, SIPs, Stockmarket etc…I think many people will be interested to read. You are doing a good job. Good article and good discussion.

In my opinion, the Govt. However, at the same time, Govt. Which I think is not fair! Also, the timing of some these moves, like first announcement of tax on EPF and then rollback of that decision and now immediately lowering the interest rates is not going well for the Govt. Govt is not acting swiftly on defaulters and bad NPAs of the banks, afterall for all the Govt.

Yes, I agree with you Hemant, by raising excise duty several times, it seems that the government has once again brought in some kind of regulation. Moreover, will you pay Rs. You will not and I am sure nobody will. This is a democratic country with mindless media, unlike North Korea. As far as the matters of NPAs and wilful defaulters are concerned, you would also agree with me that businesses do fail.

Very few people expected big American banks to fail during sub-prime crisis in and you know what, this crisis was a result of two big anomalies in the system — low interest rates and sky rocketing property prices. I am not advocating here any wilful defaulters, like Vijay Mallya. But, businesses do fail and it becomes difficult sometimes to survive.

However, I do agree that the government now has the opportunity to make stricter laws against wilful defaulters. Hi Shiv As these rate cuts are effective from 1st april can i buy KVP and NSC at old rates NOW?.

If i buy now will the rate reduction will be applicable for those purchases also once we reach 1st april? Hi Kumar, This rate reduction will NOT impact your new as well as existing investments made in KVP and NSC prior to April 1, Hello Shiv and others, this one seems to be a good discussion with Shiv having provided some insightful responses.

But Shiv, without going into a whole lot of detail here, I would like to mention that though the steps taken by the Govt might be in the right direction, they pitifully address only one side of the story. Multiple other critical things need to be addressed before or alongside this. Having gone ahead with just the angle of rate cuts shows lack of knowledge and understanding on what needs to be done to arrive at a better overall economic state in the country.

These so called economists and their quasi economics gets so lame, every time. Just comparing on similar instruments between say India and the advanced countries example US , you can see the wrong that is being done here — cost of living is much cheaper there, people have social security, etc. Many other countries even have free health insurance. Simply put, people are not at high risk on their livelihoods before and after retirement.

Please also check on the proportionate income and expenditure quotients between India and US. Does the average Indian even know now how much is going to be enough to support his family even the next year? Prices of life essentials in US have not moved for so many years now beyond a necessary minimum. And you see the state of affairs in India… Whoever tries to justify govt actions, is doing nothing but giving a big thumbs up to the act of the real Indian working class, salaried private workers and retirees, perpetually being forced to pay for the expenses of govt and govt employees at the cost of their future.

What the govt needs to do rather to counter their debts, etc is to have educated people in the govt, understand the uniqueness attached to India as a country, revise the constitution, have govt establishments become profit centers or sell them off, generate increased and new sources of revenue, cut out sick establishments including their own free perks.

Then come things like social security, savings instruments, etc. There is so much more, but this can be a start. Hi Priyam, I agree with you that a whole lot of things need to be corrected here in India and the time is NOW, NOW and NOW. But, can you please explain me how other developed countries achieved high growth?

By creating anomalies or by removing them? I think Indian democracy and its constitution are its biggest strength as well as its problems. It takes a lifetime in India to correct anomalies. GST bill, which even Congress supports and says it is our bill, has failed to see the light of the day till today because Congress will not allow the bill to get passed till Mrs. Sushma Swaraj is made to resign for her so called support to Lalit Modi to fly out of India.

This is pure politics and nothing else. These politicians are not for you, but for your votes only most of the times. You are saying that there is a hell lot of difference between India and the developed countries like the U. Please compare India with all other countries, not only with the U. Each country has its positives and negatives.

I think India still is a much cheaper country to live in as compared to the U. If the prices of essential goods have risen here in India in the last 15 years, so have the income levels of a common Indian citizen. I completely agree and strongly support your thoughts you have listed out in the last para of your comment. India needs more people like you with positive and growth-oriented mindset. If I invest in Senior Citizen FD account before 31st March, will I still get annual fixed interest rate of 9.

First and foremost, I appreciate your positive outlook on both pros and cons of the issues involved. I live in Bangalore. Only thing that has come down during the Modi regime is the interest rate on all investments. We, senior citizens are squeezed by both the Centre and the State Govts. Prices of every single essential items like milk, water.

I do not agree with you here. I think the prices of most of the essential items have either fallen here in India in the last months OR have risen at a slower pace than the growth in income levels. It is the global factors in many of the cases which have led to a sharp decline in commodity prices. Moreover, you would agree with me that it is our income levels which are giving us more liberty to spend higher outside.

We spend a minimum of Rs. Our children easily buy iPhones worth Rs. We easily spend Rs. School fee for 2 children costs us a minimum of Rs. Medical costs were also lower 15 years ago. So, it is our income levels or our lifestyle which is resulting in higher spending rather than the government acting against its pubic.

I would like to know from any expert , how much reliance industry is benefitted by not lowering base rate of oil. I have not come across any article towards this aspect and want to know more towards this. Rao, I think the government is first required to think about those poor people of India who do not have money to get even two meals a day to survive and to live to see their children grow and become responsible citizens of India.

Then only the government is required to think about Senior Citizens who can at least invest in these schemes. Senior Citizens are already tax exempt up to Rs. What else a common senior citizen of India requires to survive? We need to first think about the poor people of India. Not only this government, we also need to work for them. Are these rates applicable for older deposits as well. Suppose, I open a SCSS currently at 9. Will reduced rate of 8. Bali, I also was worried as no official clarification yet from Govt.

Shiv confirms immdtly now with full confidence for all such readers like u and me!! Bali, SCSS investors will keep earning 9. OR effective from April 1, to be reviewed quarterly? Hemant, PPF interest rate will be reviewed on a quarterly basis w. Hi Shiv It is very much true that the interest rates offered in India are offered nowhere else in the world. Govt has to show significant infrastructure growth for all these cuts.

Education is one place I see useless direction and interference in universities but nothing at school level. Improving the municipality school standards and conditions will kill the private school business and take this country far ahead. This is where US wins over rest, an extremely strong public school system. Singapore is definitely a great example for public transit.

People will appreciate economic moves when they see accountability in the system. More than Vijay Mallya the banks are more culpable and we are never going to see any action taken against the people who did the reckless lending. Sadly it will never happen not in India nor anywhere in the world, only small fish get caught because politics is so interwined with the financial world.

Hi Harinee, I completely agree with your views here.

But, trust me, this government is working really hard to get things in order, unlike the dramas Delhi government is doing. It will take this government some more time to get its acts together and then once this big ship starts sailing, you will see a healthy growth taking this country to the next level.

Vajpayee government also did an excellent job during his tenure, but the next 10 years whitewashed all his efforts. Yes Vajpayee govt never gets the credit it deserves. The only power surplus states are BJP ones but most people have no awareness of this. If i invest in 5 year term deposit in post office before 31 march will i get 8.

The interest rate reducing on senior citizens scheme SCSS from 9. FM has to re think on this issue. Other way is to reduce the max. Thanks Uday for your inputs! The idea behind Rs. It is up to the Finance Ministry to rethink about lowering or increasing this investment limit. Few points on the decision taken: Firstly, good move by the govt.

Income tax is being levied on PPF if I am not wrong and is it correct to cut the interest rates? Does these new rates apply to previously saved money eg. New taxes like Swachh Bharath Cess are really needed? I am really disappointed of this tax in particular. PPF maturity value is tax exempt, no tax gets levied on it. In my opinion, it is a move in the right direction to cut its interest rate, but your view against this move is also welcome! Yes, for SSA and PPF, these new rates will be applicable for a period of 3 months from April 1, to June 30, However, your deposit in SSA will earn you 9.

If we the Indians start maintaining our country, our roads, our infrastructure like our homes and our cars, then probably there is no need for the Swachh Bharat Cess. I totally agree with your views. Though I am a retired person and will be affected the most by these rate cuts and the resultant cuts in Bank FD interest rates, I would still prefer to reduce my household expenses rather than take subsidy from the Government.

In my view many of the benefits from Government subsidies are enjoyed by the middle class and the comparatively affluent class. Do the truly poor families of our country put money in PPF, Senior Citeezen savings scheme etc. I only hope that the money saved by reduction in rates in small savings scheme will go in development activities such as Education and Health which will benefit the entire society. Thanks a lot Mr. Mitra for your encouraging words and support!

We need more and more people with a mindset like yours so that we become the best country in the world to live in. Many people who dont pay a single paise tax have big cars and big properties.

Citizen pension bima yoga a last yr inaugust n it was closed within a very short period. Does they confirm that those who r availing this facility they r not sr. Citizen but most of them r working n in the age between 55 to Then where the retired people will go.

What is the use for the scheme which is meant for retired person? Sadanandan, You can invest in Senior Citizen Savings Scheme, it is meant for senior citizens only.

It currently provides a good 9. Interest will be paid on a quarterly basis. Hi Shiv Regarding the health care, the cost of medicines and treatment is sky rocketting. Its part of the inflation you may say. Like the price of petrol its not going to come down in the future. There is hardly any investment in public health care system by the Govt. This Govt is encouraging private sector and medical insurance system like in the west, but how many of the poor can afford and get a decent treatment in rural villages.

Its good for the urban class. But the remote villages of India, the health care system is primitive. Its nice to hear all these talks of health care developmental activities, but in reality its not true.

The health of all the sectors of community- poor middle class and upper class-are getting worse, newer disease,costlier medicine all add the agony. In future,every one should be prepared to shed more from the pocket if you fall ill, so live a healthy life style.

Paulose, Let me share my experience with you despite of the fact that you are more experienced in these matters than me. Also, people in villages, who work hard to earn their livelihood, are less likely to fall ill and succumb to healthcare problems than urban Indians.

So, the Modi government wants every Indian citizen to practice Yoga and Meditation so that the government is able to spend more money on other important infrastructure related expenditures.

Jokes apart, I completely agree with your views here! The government is required to work very hard and implement its policies efficiently to improve healthcare facilities for the rural population and I am confident that the new healthcare scheme announced in the current budget will take care of your concerns. My Dear Shiv, Its not easy to advise one to breathe air Yoga when you are hungry and starved.. I am glad our Hon. Any way your forum is getting heated up, let it fire… Very intersting..

Shiv, readers may wonder what dangers hidden in Kundalini yoga they are welcome to read one of my post in my blog- http: Paulose for becoming a part of this OneMint family!

Paulose, which you think could be of interest to our readers here? My dear Shiv You want me to get engaged in the vigorous combat zone of One mint forum?? My resources are limited..

Many other essential things which are good for health are very cheap to buy. Practising Yoga, Pranayama, Meditation and living a healthy lifestyle keeps you away from Doctors and medicines. I agree that you cannot practice Pranayama when you are hungry and starved, but if you practice these things, you can live a healthy life.

Shiv I agree desire has no end.. Retired Senior Citizens, who have no pension benefits, have to depend on the interest earned on the Small Saving Schemes, like SCSS, PPF, NSC etc. Government can exempt the rate cuts for these deposits from Senior Citizens and this will help them to continue their normal life. Senior Citizens already get many extra benefits Mr.

Why do we always need subsidies to live a normal life? SCSS, PPF and NSC are already subsidized, even after these cuts. Dear Shiv Is there any authentic official Circular to the effect that if a deposit is made in Sr citizen savibgs scheme before 31 March 16,the rate of interest till 31 March will be 9.

This clearly means interest rate will remain 9. Sir, Pl let me know that if RD is opened upto 31 Mar , the maturity value will remain the same i. Jain, the maturity value in Post Office Recurring Deposit will remain Rs.

Today I visited SBBJ today and was informed that if I deposit say Rs. Earlier it was not so, I presume. Apte, that is not correct. Deposits made before April 1, will keep earning 9. This is wrong Fd Nsc carry fixed interest untill maturity. If you deposit in Po TD or Sr Citizen Fd in any branch you will continue to enjoy the same rate untill maturity.

If you deposit after 31st Mar you will get the new rate untill maturity. Every qtr the govt will review rate which will affect new deposits only. In the case of PPF the rate will keep changing every qtr if there is a change. Some mis communication happened. Yes, your investment of an additional Rs.

April 1, and it will remain 8.

Tax Saving: Tax Saving Investments FY Here’s all you need to know - The Economic Times

Shiv, I could not understand what Mr. Sourav Ganguly meant by his comments. May be I am an airhead to understand all his view points or dimensions of discussions. Can you please translate into simple english. Paulose, Sourav wants people to change their mindsets and invest more and more in market-linked securities, preferably equity-linked instruments, for high returns, as they give the highest returns over a long period of time.

Thanks Sourav for your inputs here! I agree with you that investors here need to change their mindsets and try to stand on their own feet for their brighter future instead of depending on the government subsidies for artificially high returns! Investments for market linked returns is the key. An economy which survives on fixed returns is doomed to fail. It is too loses for the people..

I do not vote it.. Shah, Inflation has fallen over the past months and that has made banks to cut their deposit rates. Now, it was natural for the government to cut interest rates on these schemes which was long overdue as well.

This would result in the RBI cutting its rates and then lending rates would also come down. This is good for the economy overall. Good steps taken never get a thumbs up from the voters in this country, we need false promises! The wrong and misplaced concept of Nehruvian socialism is the main reason for poverty and wretchedness in society. That socialistic way of thinking which has done all the harm to the society is so well entrenched in our minds ,that any such daring step by progressive Government like the one which we have now is criticised.

Time that people realize whether they want real or artificial progress financially. Just Posted — Should You Invest in NPS Post Budget ? What is the amount of the yearly interest earned on NSC 10 and 5 Years maturity for reflecting in ITR to pay the income tax as it used to be in tabular form in earlier NSC issues. Kundapur, SCSS will keep earning 9. You can support this government for swach bharat, service tax, black money, low interest rates, ppf nsc slash, water tax, uturns etc etc but the fact is a fact.

Sooner you realize better for you. I am glad Mr. Agrawal that you have realized what this government is doing.

Good for the country. It is a 5 hr documentary about 5 businessmen who built America from scratch. While Americans respect their businessmen, sadly, we Indians hate them. Hope it is available on Youtube. Swain, Interest rate on SSY will change on a quarterly basis. So, the maturity value will change based on the rate of interest and the timing of your deposits.

If I invest in Senior Citizen Savings Scheme, on or before 31st March,, would I get interest 9. If I invest in Senior Citizen Saving Scheme, on or before 31st March, would I get interest payable quarterly for the next 5 years?

Interest will remain 9. It is amusing to read all the comments expressing angst on these steps. Inflation has come down by a lot more than the decrease in interest rate so even with the reduced rate, it is better than before when inflation was running higher. I guess not many people understand this. But, the govt should be smart about this. I completely agree with you here VS!

Sir, I have the following questions: There is some confusion on this. Quarterly revision in interest rates is applicable for all the PPF and Sukanya Samriddhi Yojana SSY accounts, but not applicable to older SCSS, NSCs, KVPs, MIS and other schemes opened prior to April 1, Revised interest rates will be applicable to your fresh contributions in all the schemes opened after March 31, But, your older investments, except PPF and SSY, will continue earning higher rates. As now the ppf rates are revised for quarterly change, how is the interest calculated?

Previously, it used to be the lowest balance between 5th to end of the month is considered for interest calculation. Is it the same process considered for this year too? It is not clear whether the lower interest of 8. It is clear Mr. Hi Shiv, I am a regular follower of your article and thanks a ton for valuable information that you are providing. The government has indeed taken a bold unpopular decision by reducing the interest rates.

Jobs are the need of the hour and corporate lending rates needs to be reduced for us to be competitive. Though I am also affected by this ….. We should whole heartedly support central govenment.

One problem is bank depositis are reducing and to make it popular govt needs to make interest tax free or apply long term gains to interest income tax. The lethargic behaviour of IT department towards me and your good suggestions made me move all my FD to tax free bonds. Thanks Srikumar for your kind words! These are steps in the right direction and I think the government will do everything to support corporates and the public at large.

As his age is 59 so he is not eligible Senior Citizen scheme. Some of the queries are: HDFC or Tata Balanced Fund 6 How much money to put for emergency fund 1. Request you to please provide your input on the above query and which will help us to create a path for next upcoming few years. Sorry Shalabh, I cannot take such individual queries here on this forum.

You can mail me your queries on my mail id — skukreja investitude. Dear Shri Shiv Kukreja I follow you through your posts which are so informative and helpful to all.

Many thanks for your excellent work. I need a clarification on the interest received from NHAI TFB Tranche I , issue on 2nd April I had applied bonds 7. Hence,my yearly interest works out as Rs. So, for 80 days from Why is this differnce? In another case,in which my friend had applied and got bonds 7. He has got only Rs. Please clarify the anomalies also. Bhattacharya, I am not sure why such anomalies are there. You need to contact the Registrar for the same and check with them the reason for such a difference.

If i required to do any moderation,how to do it? Why is this difference? Please clarify the anomalies between these two cases also as per calculation I have got less amount and my friend has got much lesser amount. Hi shiv I have a respect for you but such articles try to justify goonda govt and does not look apolitical. When it is about taking from aam admi then it is economics but when it is turn of paying it back then simply refusal and again economics. Aam admi spends most of his money on food medical tution fees etc.

All those things have inflation much above CPI. When scams take place like bank NPA, Punjab food scam, over priced coal etc. Everything has to be looked in totality and if govt just takes and does not give back then it will be rightly called as luteri sarkar!!!

Hi Anuj, Call it a politically motivated article or whatever you want, I still think it is an excellent move by the government to lower artificially high interest rates on small saving schemes. The government should have done it last year itself and I think not doing it last year was a politically-driven decision.

No, nobody would have tolerated such a hike. Now, compare your income with your expenses, I am sure you would find your living standards going up considerably in the last years or so.

Check these tax slab rates for FY — Income less than Rs. Now, check these tax slab rates for the current financial year — Income less than Rs. There is a jump of at least 5 times in the tax exemption rates for every tax slab in the last 10 years.

Now, I would like to have your comments on these. So, if we have developed the habit of complaining, then it is the time to change our mindsets and work for the betterment of this country. Are not fuel prices down? Please note that in the past, fuel prices were artificially kept low even when crude was at very high prices for petty political reasons.

Now, since the prices are by and large market linked, when the crude has become lower, fuel prices are still at the same level. How can you compare the current market linked prices to the artificially suppressed prices of the past and cry foul?

Surprised to note that you are trying to attribute the Bank NPA scam to the present government. It is the result of decades of corrupt policies of congress which has to come out at some point of time. Now when government is trying to do something on this monumental problem, you are trying to say that this has been created by them!!!! By the way, depiction of Aam aadmi has become some sort of a joke, for his failure to look beyond and understand the truth I may be little politically incorrect in saying this.

Unfortunate that, politicians of some parties are trying to project Aam aadmis as greedy for everything free, timid and unintelligent. Do not fall into this trap. Making such comments are rude. I think you should appologize. Looks like u have not read my comment or read it with a pre-conceived notion.

My objection is to the opposition politicians trying to raise passions for everything the Government does, by branding them as anti aam aadmi, even though they are path breaking. Also, let us be clear that, pto-aam aadmi does not mean pro- populism. This sort of warped thinking has brought the country to this level. Years of fuel, ration, and fertiliser subsidies without proper supply chain has made our country one of the most corrupt in the world.

Status quoism will only set the country backward. There is no need for me to apologise, but there is a need for you to not to fall prey to populistic , misplaced nehruvian — socialistic thinking. It is easy to be politically correct, but does not take us any where. Also, let us be clear that, pro-aam aadmi does not mean pro- populism. Dear Srinivas Point taken. I sense what you are against? But what do you stands for-Catpitalism-Minority privileges and class rule?

It is a time one should ask ourself what is being done by the Govt. Villages after village is becoming like desert, not even a drop of water in sight. Humans and animals are fleeing or dying every day. This is a man made and climate disaster happening all over the world and mostly affecting our rural India.

We are boastful of our economic growth in percentages and waiting for the Monsoon to come. We are all waiting for the inflation linkage to bountiful Monsoon.

Suppose if less or no monsoon comes? Most of the readers including me are sitting under the AC watching IPL in lush green field and we heard how much precious water was used there. This is a crime and its cruel.

We must not blame the Govt alone, every one of us has got a responsibility, plant a small plant in your balcony, or small tree in a road side or any public place, if you can. Who is bothered about it? Paulose, I agree with you, every one of us has the responsibility to do something for the society, bigger or smaller.

There are so many other things which we do to waste our natural resources, why only to blame IPL for this? Yes, we need to introspect. But, when we are not ready to understand the problems this country as a whole is facing, then why to blame the government alone?

Are we not responsible for the problems we are facing these days. I think these are one of the biggest sources of pollution to our environment.

Can we stop using these two things and contribute our savings to the drought hit areas of India? If yes, good for the countrymen, we should do that. If not, then we should stop blaming the government for not doing anything for the drought hit areas. My Dear Shiv I cannot concur your opinion on the misuse of water for IPL fields and shifting them to no drought hit areas.

If you have seen the pictures of fleeing farmers from souring heat and drought hit areas in 10 states of India, you will not say this. By these comments we are making mockery of the poor farmers. Sir Please specify the maturity amount of NSC as per rae of interest 8.

Sir, I start deposit in SSY in post office on last November 9. Also should I wait up to coming November for the next year deposit or can I deposit now? If so will the interest rate will go to 8. Please explain as detail. Dear sir I have read all the question and answers provide by professional shri Kukreja. Dear sir what is social security provided by government to common man specially the middle class man. Although i shall be retiring from a Govt. PSU having no pension facilitates accept that the the PF what i could save i will have to eat out of it, beside getting other family responsibilities carried out of it.

Still i am lot worried how i shall carry on further. If govt can not give pension and is slowly getting rid of this responsibility than at last it should not cut on or touch the postal saving scheme rates of SCSS or monthly schemes where the individual is investing the money Is not the responsibility of govt that the person who is retiring after putting 30 year or more year of service lives a respectable life.

Even the LPG subsidies are also withdrawn once u come in income tax bracket. Who will pay if the amount invested in trhe market gets doomed. Govt should not have touched on to atleat SCSS this is only income or pension poor fellow have which he gets after investing his hard earned money which remains with the Govt for quite a few year as a capital money.

PF body may invest Rs 6, crore in Equity Market for year More info https: Just look how each central govt is befooling the native people. Up to this, the situation was somehow acceptable. Now the sangh paribar cheats additionally reduced the interest rate to 7.

Where is the charm now? Is interest accuring from NSC taxable as in the case of FD for 5 years interest is taxable.? Which should be preferred NSC or FD.

Hi Shiv, I am looking to invest in post. Is it good compare to investment schemes in bank. Interest rate reduced from 8. Previously it was half yearly compounded 10, It is mentioned in India Post web that the rate being offered as half yearly compounded.

Very useful article indeed. The interest rate of Sukanya Samriddhi Yojana has been reduced a lot compared to its starting rate. However, it still is the best savings scheme for a girl child in India.

Thank you for sharing the information along with your detailed insights. I hv an investment in Birla Sun Life Dynamic Bond Fund — Regular Plan — Dividend Dividend reinvestment plan NAV Notify me of followup comments via e-mail. Should You Invest in NPS Post Budget ? Post Office Small Savings Schemes — FY Interest Rates — PPF 8. More from my site Post Office Small Saving Schemes — FY Interest Rates — PPF 8.

The reason may be March month is a financial year end and they may accept from next month. Bandar Kya janey adrak ka swad Reply. Dear Shiv, Just think for once that before doing what Mr. Thanks Abhinav for sharing your views, I absolutely agree with all of them!

Who are the poor pensioners.? What is the yearly In come an individual? BJP is the enemy of Aam adami. Govindan for sharing your thoughts! You will get to know what is difference between these trusted government schemes and others Reply.

Hope and pray, It will turn out good for all of us… Reply. This is a well written article , for a growing economy , one should have the mindset like the author of this article , Reply. Thanks Debasis for your suggestion! To know more about interest rate read my comments Reply. Completely agree Gaurav, we need to change our mindset! You may read my comments Reply. No Venkatraman, this reduction will not affect your investment in SCSS.

I doubt inflation rates are calculated considering these factors also. Thanks Shiv, In my opinion, govt should not act like a banker. It is not only for business. I beg to differ on your opinion on this… Reply. I will definitely try to write a post on it sometime in April.

Mallya to return Reply. Hi Shiv First and foremost, I appreciate your positive outlook on both pros and cons of the issues involved. I think this is very ridiculous step of govt. Hi Srinivas, Interest Rate will remain 8. Hello Shiv, Few points on the decision taken: