SB ORDER NO. 3/2008

SB ORDER NO. 3/2008

No.113-11/2003-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001, Dated: 19.2.2008

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Re-payment of any deposit or loan together with interest in any Small Savings Scheme except Savings Account if the amount is Rs. 20,000/- or more- a clarification regarding.

Sir / Madam,

Kindly refer to this office letter of even number dated 10.1.2006 and 28.9.2006 on the subject cited above. This office is receiving references from the field units for issue of clarifications on this issue.

2. As per provisions of Section 269-T of Income Tax Act, amount of any repayment of deposit or loan together with interest made with Department of Posts if becomes Rs. 20,000/- or more, it can only be made by account payee cheque or account payee bank draft or by crediting into Savings Bank Account if standing at the same post office.

3. Hence, it is clarified that any repayment of deposit together with interest in any of the Small Savings Schemes except Savings Account if becomes Rs.20,000/- or above should only be made either by account payee cheque or by crediting into Savings Account of the person standing at the same post office provided that maximum limit prescribed for single as well as joint Savings Account is not exceeded.

4. It is further clarified that re-payment of Rs.20,000/- or above in any of the Small Savings Schemes except Savings Account can not be made by cash in any case. Any violation of these instructions will be treated as a CORRUPT PRACTICE and the disciplinary authority will take disciplinary action against the official responsible accordingly.

5. This may kindly be brought to the notice of all concerned.

6. This issues with the approval of DDG (FS)

Yours faithfully,

(R.K.Kashyap)

Director (FS)