Presentation on post office

By NITIKA DHYANI

DEPARTMENT OF POST IN INDIA Beginning of postal services -

1837Setting up of the postal department -

1854Beginning of the railway post services –

1907Beginning of the airmail services 1911Beginning of the quick mail services -

1986

Post Offices offer various types of accounts

Recurring Deposit Account [RD]Monthly Income Account [MIS]

Post Offices also offer various saving and tax saving instruments such as:

National Savings Certificate[NSC]Public Provident Fund[PPF]Kisan Vikas Patra[KVP]

Post office offers customers the facility of a 5-Year Recurring Deposit (RD) Account .customers earns interest over a fixed period of time. An RD is usually opened for a fixed period of time. Recurring Deposit Account is an ideal investment option for first time investors or young professionals as it does not require customers to invest large sums of money towards instalments but does earn you handsome interest at the end of the maturity period.

RD

Features of recurring deposited scheme:Facility of nomination is available.Transfer of account from one post office to another.A person open several accounts.Two adult open a joint account.In case installment not deposited in fixed time period, default fee is realized.

Advantages of RDEncourage people to inculcate regular saving habit .Post office available at all place.Government can invest the amount obtained from this scheme .

MISMIS is meant for those investors who

want to invest a lump sum and earn interest on monthly basis for their livelihood. The scheme is, therefore, a boon for retired persons.

Features of MISAmount to be invested Minimum limit single account :6000 joint account :6000Maximum limit single account :450000 joint account :900000Maturity Period of MIS account is 5 year.Rate of interest 8.40% per annum is payable monthly. In addition, bonus equal to 5% of the deposited amount is payable at the time of repayment on maturity.Position of minor The account can be opened by a single adult or 2-3 adults jointly.Transfer facility: Transfer of account from one post office to another.

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Advantages of MIS

Retired person does not feel the absence of the payment of salary. Government gives the guarantee that this investment is completely secure.

National Saving Certificate (NSC) is one of the most popular post office tax saving scheme. It gives you a fixed amount after 5 years. This scheme gives you tax benefit under section 80C of the income tax act in this post.

NSC

National Savings Certificate can be purchased by the following:

An adult in his own name or on behalf of a minor A minor A trustTwo adults jointlyHindu Undivided FamilyInvestment amount in NSC: Available in the

denominations of Rs 500, Rs. 1000, Rs. 5000, & Rs. 10,000. There is no maximum limit on the purchase of the certificates.

Features of NSC

Availability : NSC available in all the authorized post office and head post office In the whole country.Rate of interest charge 8.50%.per annum . Nomination facility: The nomination facility on NSc is available on account of the availability of this facility the nominee becomes the holder of NSc when the original holder is no more alive.Use as security: the facility of loan is available on NSC. Can be obtain from bank by keeping them as security. Premature payment :maturity period of NSc five year .generally payment cant got before completion of period.

Advantages of NCSTax benefit: is available on the investment made in NSC.Zero risk benefit: the guarantee of the government of India available on this investment, this investment is risk free.Sufficient income benefit :income of this investment is much more than the income to be obtained on the other investment of this category. Tax benefit: under the section 80C of the income

Transferability facility: from one person name to another person is available .similarly they can be transfer from one post office to another.Reinvestment facility :earned interest in one year investment for following year. tax benefit is obtained up to the first four year. because end of maturity is 5year,reinvestment of interest earned during the year not possible.

Public Provident is a savings cum tax saving instrument. It also serves as a retirement planning tool for many of those who do not have any structured pension plan covering them.

PPF

Features of PPFEligibility :PPF account can open by every body via, salaried the self employed and other. Except HUF and NRI.Minimum and maximum limit : Minimum 1000 and maximum 100000 rupee can be deposit in one yearRate of interest earned on the PPF is 8.70%.Joint account: PPF account cannot be opened in joint name.Nomination facility can be added to PPF account at the time of open it.

ContinuoPre-mature withdrawal not allow. but in case of emergency the facility of withdrawal upto the limit is available this facility available from 7year withdrawals 50% of the balance at the end of four year or 50%balance at the end of the immediate preceding year, whichever is less.The minimum tenure of PPF is 15 year after completed there is provision of extension of tenure for a back of 5year for unlimited time. the contribution is illegal.

Double tax benefit Income Tax rebate is available "on the deposits made", under Section 80c of Income Tax Act. Secondly Interest earn this account is tax-free.

Loan facility also available from the post office. this facility available from third to fifth year.

The rate of interest obtain from this loan is 2% or more than rate available on the PPF account

Advantages of PPF

Amount invested in KVP doubles on maturity after 8 years & 7 monthsThe main objective of the scheme is to help the farmer.01.12.2011 kvs has been discontinuedKisan does not imply that only farmer can invest in kvp but it implies the government will be spend the collected money through this scheme for welfare of farmer.

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KVP

Eligibility An adult in his own name, or on behalf of a minor, A minor, A Trust, Two adults jointlyDeposit limitKVP are available in the denominations of Rs 100, Rs 500,

Rs 1000, Rs 5000, Rs. 10,000 & Rs. 50,000. There is no maximum limit on purchase of KVPs.

Premature encashment of the certificate is not permissible except at a discount in the case of death of the holder(s), forfeiture by a pledge and when ordered by a court of law.

No income tax benefit is available under the Kisan Vikas Patra scheme.

Nomination facility on the investment in kvp available.

Features of kvp

Advantages of kvpDevelopment of agriculture kvp used by the government for providing facilities to the farmer for agriculture development of agriculture.Safe investment KVP issued by government, amount invested by them fully safe.Encourage saving income from this investment is quite enough therefore people get attached toward this scheme .