Information about National Saving Schemes

Defence Savings Certificates

Certificates can be purchased from any National Savings Centre (NSC), Pakistan Post Offices (PPO), Authorized branches of Scheduled Banks and State Bank of Pakistan (SBP) by filling in a prescribed form called SC-1, which is available at all the above offices of issue free of cost. A copy of the Computerized National Identity Card (CNIC) or in case of a foreign national, a copy of the Passport is required to be attached with the application form.

These certificates can be purchased by depositing cash at the issuing office or by presenting a cheque. The certificates shall immediately be issued on receipt of cash. However, in case of deposit through cheque the certificates shall be issued from the date of realization of the cheque after receipt of the clearance advice.

These certificates are encashable at par any time after the date of purchase. However, no profit is payable if encashment is made before completion of one year.
NOTE: The encashment of certificate(s) may be allowed through a person duly authorized (in writing) by the investor on an authority letter under his / her signature provided that:-
(a). the signatures of the authorized person are attested by the investor on the letter of authority;
(b). the Officer Incharge of the NSC is personally satisfied that the authorized person is genuine and the certificate(s) is / are properly discharged under genuine signatures and both the signatures i.e. on the back of the certificate(s) and the letter of authority tally 100% with the specimen on the investor available on the record.
(C). The receipt of the amount is got acknowledged from the authorized person on the reverse of certificate(s) personally by the Centre In charge.

Rate of return

In this scheme the profit is paid on maturity or encashment for completed years. Every Rs.100,000/- will become Rs.105,000/-, Rs.111,000/-, Rs.118,000/-, Rs.126,000/-, Rs.135,000/-, Rs.145,000/-, Rs.156,000/-, Rs.169,000/-, Rs.185,000/- and Rs.205,000/- on completion of 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10 years, respectively. These rates are effective from 1st Oct, 2016. The average compound rate of return on maturity presently works to 7.44% p.a. For any other time period rates table is also available on website.

Tax and Zakat deduction

Exemption of deduction of Withholding tax has been withdrawn w.e.f 01-07-2013 on profit of investment upto Rs.150, 000. W.e.f. 1st July, 2014 the rate of tax to be deducted under Section 151 of Income Tax Ordinance 2001 shall be 10% of the yield or profit for Filers and 17.5% of the yield or profit paid for Non-Filers. Provided that for a non-filer, if the yield or profit paid is rupees five hundred thousand or less, the rate shall be 10%. The Zakat is collected at source as per rules.

 

Regular Income Certificates

 

These certificates are available in the denomination of Rs.50,000, Rs.100,000, Rs.500,000, Rs.1,000,000, Rs.5,000,000 & Rs.10,000,000/=. Profit is paid on monthly basis reckoned from the date of issue of certificates.

These certificates can be purchased by a single adult, a minor or two adults in their joint names with the options of payable to the holders jointly (Joint-A ) or payable to either (Joint-B). An adult can also purchase these certificates on behalf of a single minor, two minors jointly or himself/herself and a minor jointly. Institutions may also invest individual funds such as pension, gratuity, superannuation, contributory provident funds and trusts etc.

These certificates can be purchased from any National Savings Centre (NSCs) or from Pakistan Post Office (PPO) by filling in a prescribed form called SC-1, which is available at all the above offices of issue free of cost. A copy of the Computerized National Identity Card (CNIC) or in case of a foreign national, a copy of the Passport may be attached with the application form (SC-I).

The minimum investment limit is Rs.50,000/-, however, there is no maximum investment limit in this scheme.

These certificates are enchase able any time subject to deduction of service charges at the following rates:
If enchased before completion of one year from the date of issue. @ 2.00% of the face value
If enchased after one year but before completion of 02 years from the date of issue. @ 1.50% of the face value
If enchased after two years but before completion of 03 years from the date of issue. @ 1.00% of the face value
If encashed after three years but before completion of 04 years from the date of issue. @ 0.50% of the face value
Further, certificates purchased on or after 15-11-2010 cannot be automatically reinvested.

Rate of Return

At the prevailing rates monthly profit of Rs.530.00 (including withholding tax) is paid on investment of each Rs.100,000/-. This way the profit rate works to 6.36% p.a. However, the facility of automatic reinvestment of profit to earn further profit is not available in this scheme. The monthly profit, if not drawn on due date shall not earn further profit.

Tax and Zakat deduction

W.e.f. 1st July,2014 the rate of tax to be deducted under Section 151 of Income Tax Ordinance 2001 shall be 10% of the yield or profit for Filers and 17.5% of the yield or profit paid for Non-Filers. Provided that for a non-filer, if the yield or profit paid is rupees five hundred thousand or less, the rate shall be 10%. However, the investment made in this scheme is exempt from collection of Zakat.

 

Special Savings Certificates

 

These three years’ maturity certificates are available in the denomination of Rs.500, Rs.1000, Rs.5,000, Rs.10,000, Rs.50,000, Rs.100,000, Rs.500,000 and Rs.1,000,000. Profit is paid on the completion of each period of six months.

The minimum investment limit is Rs.500/-, however, there is no maximum investment limit in the scheme.

Rate of Return

At prevailing rates, the profit is paid @ 5.80% p.a. for 1st five profits and @ 6.20% p.a. for the last profit. However, if the profit is not withdrawn on due date it will automatically stand reinvested and would be calculated for further profit on completion of the next 06 months’ period.

Tax and Zakat deduction

the rate of tax to be deducted under Section 151 of Income Tax Ordinance 2001 shall be 10% of the yield or profit for Filers and 17.5% of the yield or profit paid for Non-Filers. Provided that for a non-filer, if the yield or profit paid is rupees five hundred thousand or less, the rate shall be 10%. Zakat is collected at source as per rules.

 

 

Behbood Savings Certificates

Keeping in view the hardships faced by the widows and senior citizens, this ten years’ maturity scheme was launched by the Government on 1st July, 2003. Initially the scheme was meant for widows only, however, the Govt. later decided to extend the facility for senior citizens aged 60 years and above with effect from 1st January, 2004. These certificates are available in the denominations of Rs.5,000/-, Rs.10,000/-, Rs.50,000/-, Rs.100,000/-, Rs.500,000 and 10,00000/-. Profit is paid on monthly basis reckoned from the date of purchase of the certificates.

A certificate may be purchased by any of the following Citizen of Pakistan, namely:-
(a) A senior citizen aged sixty year or above: and
(b) A single widow so long as she does not re-marry, and
(c) two eligible persons as in clause (a) and (b) in their joint names:
payable to the holders jointly or payable to either with the written consent of the other (Joint class-A); and
Payable to either (Joint class-B)

Who can purchase

These certificates can only be purchased from the National Savings Centre (NSCs) by filling in a prescribed form called SC-1, which is available at the offices of issue free of cost. For senior citizens, a copy of the Computerized National Identity Card (CNIC)/National Identity Card for Overseas Pakistanis (NICOP) and for widows besides CNIC/NICOP, a copy of death certificate of husband duly issued from concerned department and undertaking on stamp paper being still widow duly attested by Notary Public/Oath Commissioner under his seal and stamp.
Investment limit

The minimum investment limit in this scheme is Rs.5,000/- and multiple thereof, whereas, the maximum limit of investment for a single investor is Rs. 5 million and for Joint investor (Category A or B) is Rs.10 million. However, under no circumstances the investment beyond the prescribed limit is allowed, no matter such investment is under single or multiple registration, made on a single or different dates, is being maintained in a single or different National Savings Centers throughout Pakistan. In case, any such investment beyond the prescribed limit is pointed out at any stage, shall be treated as irregular abinitio and encashed immediately with zero profit. Further any amount of profit already collected/due thereon, shall be liable to be recovered/ deducted from the certificates holder/recipient of profit/ deposited amount, as the case may be.

After death of purchaser

In the event of death of purchaser(s) in case, the nominee is not eligible investor as mentioned under the heading “who can invest” no profit reckoned from the date of death of the purchaser(s) shall be paid except payment of the deposited amount/face value/ principal deposit. However, in case, where nominee is eligible to invest in BSCs, the certificate shall be transfer to his/her name, who would be entitled for rate of profit as was being paid to its original purchaser, provided there is no legal case or order of court of law issued against it.

Redemption

The certificates can be enchased any time after issuance subject to deduction of service charges at the following rates:
If enchased before completion of 01 year from the date of purchase. @ 1.00% of the face value
If enchased after one year but before completion of 02 years from the date of purchase. @ 0.75% of the face value
If enchased after two years but before completion of 03 years from the date of purchase. @ 0.50% of the face value
If enchased after three years but before completion of 04 years from the date of purchase. @ 0.25% of the face value
If enchased after completion of 04 years No service charges
Further, certificates purchased on or after 15-11-2010 cannot be automatically reinvested. However, other better options are available for investment in National Savings Schemes.
NOTE
The encashment of certificate(s) may be allowed through a person duly authorized (in writing) by the investor on an authority letter under his / her signature provided that:–
(a). the signatures of the authorized person are attested by the investor on the letter of authority;
(b). the Officer In charge of the NSC is personally satisfied that the authorized person is genuine and the certificate(s) is / are properly discharged under genuine signatures and both the signatures i.e. on the back of the certificate(s) and the letter of authority tally 100% with the specimen on the investor available on the record.
(C). The receipt of the amount is got acknowledged from the authorized person on the reverse of certificate(s) personally by the Centre In charge.

Rate of Return

At the prevailing rates monthly profit of Rs.780/- is paid on investment of each Rs.100,000/-. This way the profit rate works to 9.36% p.a. Automatic reinvestment of profit facility to earn further profit is not admissible in this scheme at the scheme’s rate. The monthly profit, if not drawn on due date shall not earn further profit.

Tax and Zakat

The withholding tax is not collected on the profit earned on these certificates. The investment made in this scheme is also exempt from Zakat.

For details please visit http://www.savings.gov.pk/

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