Pakistan National Regular Income Certificate (RIC) Scheme
Name of the Organization : Central Directorate of National Savings
Type of Facility : Regular Income Certificate (RIC) Scheme
Country :Pakistan
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Website : savings.gov.pk
Regular Income Certificate Scheme :
Keeping in view the monthly requirements of the general public, this five years’ maturity scheme was launched on 2nd February, 1993.
Related :
Pakistan National Behbood Savings Certificate (BSC) Scheme : https://www.statusin.org/2132.html
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.
Who Can Invest :
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.
How To Purchase :
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).
Download Form : savings.gov.pk
Mode of Deposit :
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.
What Is The Investment Limit :
The minimum investment limit is Rs.50,000/-, however, there is no maximum investment limit in this scheme.
What About Redemption :
These certificates are encashable any time subject to deduction of service charges at the following rates :
if encashed before completion of one year from the date of issue. AT 2.00% of the face value
if encashed after one year but before completion of 02 years from the date of issue. AT 1.50% of the face value
if encashed after two years but before completion of 03 years from the date of issue. AT 1.00% of the face value
if encashed after three years but before completion of 04 years from the date of issue. AT 0.50% of the face value
Note :
Further, certificates purchased on or after 15-11-2010 can not be automatically reinvested. However, other better options are available for investment in National Savings Schemes.
What is the return :
At the prevailing rates monthly profit of Rs.990/- (excluding withholding tax) is paid on investment of each Rs.100,000/-. This way the profit rate works to 11.88% 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 & Zakat Status :
The profit earned on these certificates is subject of deduction of 10% withholding tax at source. However, the investment made in this scheme is exempt from collection of Zakat.
Technically, there should not be a tax deduction on ‘profit’ but it is brutal that the government is deducting 15% on profit schemes. This will result in reduction of investments and will result in a huge loss to the government
I agree there should be no tax deduction on profits otherwise the government may loose investors.
There is a difference between income and profit. It is absolutely strange that the Government is deducting tax on ‘profit’.
15% with holding tax is too much. It should be 10%