National Savings Scheme, 1987.

To                                                                                              Date: 15-1-2012.

Shri Pranab Mukherji,

Minister of Finance, North Block, New Delhi-110001.

Sub: National Savings Scheme, 1987.

Ref: Ministry of Finance`s Notification no. GSR 335 (E) dt 30-3-1987.

The above scheme was introduced by Finance Ministry before 25 years. Very large number of government employees had deposited various amounts in this Scheme to save income tax from year 1987 onwards till retirement. Crores of rupees of retired employees are lying in this Scheme with meager interest of 7.5%. Nature of a government employee is to save something from tax by adopting officially permitted channels. As withdrawals from this Scheme are chargeable with income tax, many have, due to having mental block of saving tax, not withdrawn any amounts and many have expired also without any withdrawals.

We shall be grateful, if these small savings from hard earned meager salaries during those years of retired employees is allowed to be withdrawn without deduction of income tax as a special gesture towards Your Elders during forthcoming Budget for 2012-13. This will also save Post Offices to discontinue very large number of individual accounts of very large number of government employees, reducing their workload.

A line in reply in terms of para 66 of Office Manual will be very much appreciated.

Thanking you,

Yours Sincerely,

(M.V.Ruparelia)