Friday, February 23rd, 2024

Small Savings Scheme: It will be easy to get money! Government will increase the time to claim, rules will be changed


Highlights:

On declaring the nominee, there is no problem in taking the money.
There is a problem in getting the money in case of death without declaring the nominee of the account holder.
The government has proposed to submit the documents for 6 months after the death of the account holder.

New Delhi. If the account holder who has deposited money in small savings schemes like Senior Citizen Saving Scheme and Sukanya Samriddhi Yojana dies without declaring a nominee, then to get the money deposited in the account, his Heirs will be able to take the money for 6 months by submitting the appropriate documents. At present, documents have to be submitted within 3 months of the death of the account holder. Along with this, the government has also taken steps to make the process of withdrawal easier. For easy withdrawal of deposits, the government will amend the Government Savings Promotion Act 1873. This amendment has been proposed in the Finance Bill 2023.

If the Small Savings Scheme account holder declares his nominee, there is no problem in taking the money. But, the problem arises when the account holder has not told to whom the money deposited in his account should be given after his death. The legal heirs of the account holder are entitled to receive the money. But, they have to provide the will of the deceased or some other document to prove their eligibility. It takes a long time to get these documents. If these are not made within three months from the death of the account holder, many heirs are also deprived of getting the money.

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What does the Finance Bill say?
The government has added a new section 4A in the Government Savings Promotion Act. According to this, “If a depositor dies without making a nomination, his will or letter of administration of the estate or succession certificate issued under the Indian Succession Act, 1925 or legal heir certificate issued by the Department of Revenue to the authorized officer If presented within 6 months from the date of death, the amount deposited in the account will be given to the person legally entitled to it. This means that the person, or persons whose name appears in the succession certificate, will be given the money deposited in the account.

New rule will apply to these schemes
The new provisions will apply to several schemes like Post Office Savings Account, National Savings Monthly Income Account, National Savings Recurring Deposit, Sukanya Samriddhi Account, Senior Citizen Savings Scheme, Kisan Vikas Patra and Public Provident Fund Scheme.

what would be the advantage
According to a report in Financial Express, Sandeep Shah, Managing Director of NA Shah Associates, says that this step of the government will greatly benefit the heirs of the account holders. The government has now taken the initiative to simplify the entire process of getting money. Due to this, the officers will not be able to run away from the heirs without any reason. Where there is little money, in those cases this step of the government will prove to be very good. Doubling the time for submission of documents to claim money will also provide relief.

Tags: business news in hindi, personal finance, Small Savings Schemes, Sukanya samriddhi scheme

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