Special Savings Certificates, offered by National Savings (Qaumi Bachat Bank), are tailored for small to medium-range investors seeking bi-annual returns on their investments. Introduced to meet specific investor needs, this scheme offers a unique opportunity with a three-year tenure.
Revised Profit Rates Effective July 2024
In May 2024, the government revised profit rates for various products, including Special Savings Certificates. According to the new policy:
- Profit Rates: The profit rate is set at 15.7% per annum for the first five months and increases to 16.6% per annum for the sixth month.
Tax Deduction Guidelines
Taxation on Special Savings Certificates follows specific guidelines:
- For Filers: Individuals listed in the Active Taxpayer List (ATL) face a withholding tax rate of 15% of the yield or profit, regardless of the investment details.
- For Non-Filers: Those not listed in the ATL are subject to a higher withholding tax rate of 30% of the yield or profit, irrespective of the investment specifics.
These adjustments in profit rates and tax deductions aim to balance investor returns with tax compliance. The scheme continues to offer a reliable investment option with periodic returns, catering to diverse investor needs and preferences.
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