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Frequently Asked Questions
Ques. Will there be any deduction of Tax on interest income?
Ans. Income tax would be deducted if the interest amount exceeds Rs.5, 000/- (or any such amount notified by the Government from time to time) in a financial year, as per section 194A of the Income tax Act, 1961 at the applicable rate. If the depositors, who are not liable to pay income tax and the interest to be paid/ credited in the financial year does not exceed the maximum amount exempt from tax, depositor may submit a declaration in Form 15G in triplicate to the registrar namely Link Intime India Private Limited in the beginning of every financial year, so as to receive interest without deduction of tax at source, failing which tax will be deducted at source in accordance with Section 194Aof the Income tax Act, 1961. Senior Citizens may submit a declaration in Form 15H.
Ques. What are the criteria for nomination?
Ans. Individual depositors can, single or jointly, nominate other person to receive the amount of public deposit in the event of death of deposit holder. The Nominee shall be recognized as the holder of the title to the public deposit on death of all the depositors.
Ques. How can the deposit be redeemed?
Ans. Duly discharged Fixed Deposit receipt should be sent to the registrar M/s Link Intime India Private Limited atleast 15 days before the date of maturity. If repayment is required to be made by way of online transfer to bank account, details of bank account with IFSC code should be provided.
Ques. Is renewal of deposit allowed?
Ans. Deposit can be renewed on submission of duly filled application form along with the discharged receipt. However request for renewal from the date of maturity would not be considered if the request for renewal is made after 3 months from the date of maturity.
Ques. What are the criteria for premature withdrawal?
Ans. The premature withdrawals as governed by NHB guidelines are as follows
Period Completed from date of deposit Rate of Interest Payable
Before 3 Months No pre-mature withdrawal allowed
After 3 Months but before 6 Months 4% simple interest for the period during which the deposit amount was held
After 6 Months but before date of maturity Interest Payable will be 1% less than the rate applicable to the deposit for which deposit remained with the company. If the interest rate has not been prescribed for such period, then interest payable will be 2% lower than the lowest rate at which public deposits are accepted by the company
Ques. Can loan be availed on Fixed Deposit?
Ans. Yes loan can be availed on fixed deposit which has run for a minimum period of 3 months. Maximum permissible limit of loan is 75% of principal amount. However management holds the final decision on the amount of loan to be sanctioned.
Ques. Who is the Registrar to the Public Deposit Scheme?
Ans. The Registrar to the Public Deposit Scheme is

Link Intime India Pvt Ltd (Unit LIC HFL)
C 101, 247 Park,
L B S Marg, Vikhroli West,
Mumbai 400083
Tel No: +91 22 49186260.
  All communications with regard to Public Deposit should be addressed to the Registrar.
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