ISLAMABAD – The Directorate of National Savings (DNS), also known as Qaumi Bachat, has announced a decrease in the profit rate on Special Savings Certificates, effective from November 4, 2024. This move comes as part of a broader policy adjustment by the government.
Special Savings Certificates: A Brief Overview
Introduced to meet the needs of small and medium-range investors, Special Savings Certificates offer a unique investment opportunity with bi-annual returns. These certificates are available to the general public, providing a secure way for citizens to grow their savings with a three-year tenure. Profit is paid every six months upon the completion of each period.
The investment amount for Special Savings Certificates has no upper limit, and investors can purchase certificates starting from as low as Rs. 500.
New Profit Rate for Special Savings Certificates (Effective November 4, 2024)
As per the revised policy, the profit rate on Special Savings Certificates has been adjusted as follows:
- Profits No. 1 to 5: 11.60% per bi-annual period, equivalent to Rs. 5,800 for every Rs. 100,000 invested.
- Profit No. 6 (Final Profit): 12.60%, or Rs. 6,300 on an investment of Rs. 100,000.
Tax Deduction on Profits
As with all government savings schemes, there are tax deductions applicable to the profits earned from Special Savings Certificates. The rates of tax withholding are as follows:
- For Filers: Individuals who are listed in the Active Taxpayer List (ATL) will have 15% withholding tax deducted from their profits, regardless of the investment amount or date.
- For Non-Filers: Individuals who are not in the Active Taxpayer List (ATL) will face a 30% withholding tax on their profits, again irrespective of the date or amount of investment.
Key Points to Note:
- The profit rate has been lowered to 11.60% for the first five periods, with a slight increase to 12.60% for the final (sixth) period.
- The investment limit for Special Savings Certificates is unlimited, allowing flexibility for investors to choose the amount they wish to invest, starting at Rs. 500.
- The tax rates are consistent regardless of the investment date, with a 15% withholding tax for filers and 30% for non-filers.
Investors looking to participate in the Special Savings Certificates scheme should be mindful of these changes and consider how the tax rates may impact their returns. For further information, individuals are encouraged to visit local National Savings Centers or consult the Directorate of National Savings.
