Deemed encashment of NSC on becoming non-resident

Deemed encashment of NSC on becoming non-resident if a resident Indian having purchased NSC becomes Non-Resident during the currency of the maturity period

MINISTRY OF FINANCE 
Department of Economic Affairs

NOTIFICATION

New Delhi, the 3rd October, 2017

G.S.R. 1238 (E).—In exercise of the powers conferred by section 12 of the Government Savings Certificate Act, 1959 ( 46 of 1959), the Central Government hereby makes the following rules further to amend the National Savings Certificate(VIII-Issue) Rules, 1989, namely:—

1. (1) These rules may be called the National Savings Certificate (VIII-Issue) (Amendment) Rules, 2017.
(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the National Savings Certificate (VIII-Issue) Rules, 1989, in rule 4, in sub-rule (3), for the existing proviso the following proviso shall be substituted, namely:-

“Provided that if a resident Indian having purchased a certificate, subsequently becomes Non-Resident during the currency of the maturity period, the certificate shall be encashed or deemed to be encashed be encashed on the day he becomes a non-Resident, and ab interest shall be paid at the rate applicable to the Post Office Savings Account, from time to time, from such day and upto the last day of the month preceding the month in which it is actually encashed”

[F. No. 1/10/2016-NS.II]

PRASHANT GOYAL, Jt. Secy.

Note : The principal rules were published in the Gazette of India, Extraordinary, part-II, Section 3, sub-section (i), vide notification number G.S.R. 496(E), dated the 1st May, 1989 and subsequently amended vide notification numbers: G.S.R. 508(E), dated the 23rd May, 1990, G.S.R. 120(E), dated the 8th March, 1995, G.S.R. 7(E), dated the 1st January, 1999, G.S.R. 491(E), dated the 6th July, 1999, G.S.R. 47(E), dated the 15th January, 2000, G.S.R. 156(E), dated the 1st March, 2001, G.S.R. 572(E), dated the 2nd August, 2001, G.S.R. 163(E), dated the 1st March, 2002, G.S.R. 711(E), dated the 17th October, 2002, G.S.R. 179(E), dated the 1st March, 2003, G.S.R. 590(E), dated the 25th July, 2003, G.S.R. 591(E), dated the 25th July, 2003, G.S.R. 820(E), dated the 16th October, 2003, G.S.R. 289(E), dated the 13th May, 2005, G.S.R. 744(E), dated the 4th October, 2011, G.S.R. 842(E), dated the 25th November, 2011, G.S.R. 318(E), dated the 25th April, 2012, G.S.R. 397(E), dated the 25th June, 2013, G.S.R. 226(E), dated the 13th March, 2014, G.S.R. 494(E), dated the 11th July, 2014, G.S.R. 354(E), dated the 29th March, 2016, G.S.R. 944(E) dated the 30th September, 2016, G.S.R. 54(E) dated the 18th January, 2017 and G.S.R. 382(E), dated the 31st March, 2017.