What types of Deposits are available?
Cumulative as well as Fixed (Regular Income Scheme) Deposits are available.
What is the difference between a Fixed deposit and a Cumulative deposit?
For Fixed Deposits, the interest is payable on either a monthly basis.
For Cumulative Deposits, the interest is payable at the time of maturity together with the principal amount invested.
What is the minimum Deposit accepted by the Company?
The minimum deposit for both the Fixed and Cumulative deposit schemes is Rs.10,000/-.
The amount can be placed by Cheque/ Demand Draft / RTGS / NEFT.
Cheques and Demand Drafts may be issued favouring “Gove Finance Limited”
RTGS and NEFT Funds Transfer can be done using the bank details given below:
Gove Finance Limited
Bank Name: Federal Bank
Branch: Chennai Mount Road
Account No: 11000200100847
IFSC Code: FDRL0001100
How may I obtain a Deposits Application Form?
Deposit Application Forms are available at all our Branches or can be downloaded from our website.(Certificate copy can be provided on request)
Can a Deposit be placed in the name of a Minor?
Yes. A deposit can be placed in the name of a Minor provided He / She is represented by His / Her Natural or Legal Guardian.
The Deposits Application Form must be signed by the Natural/ Legal Guardian on behalf of the Minor.
All communication in relation to the deposit shall be addressed to the Guardian.
Can a Power of Attorney (POA) holder sign the Deposit Application Form?
Yes, on receipt and verification of the Power of Attorney by the Company as to its validity in this context.
Can a joint Deposit account be opened?
Yes, a maximum of three people can open a joint Deposit account payable to E or S (Either or Survivor) or F or S (Former or Survivor).
For E or S deposits, the Deposit receipt can be discharged by either of the depositors on maturity. However, all the Depositors’ signatures are required for a Premature Payment or Loan.
For F or S deposits, the Deposit receipt must be discharged by the first Depositor.
What happens if the prevailing interest rates goes up or comes down?
There will be no change. The Company will pay the contracted rate till the maturity of the Deposit Receipt as per the current rules.
When is Income Tax deducted at source from interest?
It is mandatory for the Company to deduct Tax at Source if the estimated annual interest paid /credited on the Deposit exceeds Rs.5,000/- during the financial year.
However, those Depositors who are not assessed to Income Tax may furnish a self-declaration in Form 15G or 15H (for Senior Citizens) so that tax is not deducted at source.
What is Form 15G and Form 15H and where do I get it from?
Form 15G and Form 15H (for Senior Citizens) are self- declarations given by those Depositors who are not assessed to Income Tax.
Should the Depositor not be able to sign the Form their left-hand thumb impression will suffice.
The left hand thumb impression must be attested by a Gazetted Officer or Bank Official.
What is the difference between Form 15G and Form 15H?
Declaration in Form 15G can be made by an Individual or a person (not a Company or Partnership / Proprietorship Firm).
A Company or Firm cannot submit declaration in Form 15G or Form 15H. Form 15G is for Resident Individuals below 60 years of age. Form 15H is for Resident Individuals who are Senior Citizens i.e. over 60 years of age.
Eligibility for 15G/H if in case of individuals:-
Form 15G:The total income during the financial year should not exceed the basic exemption limit as per Income Tax rules i.e. Rs.2, 50,000/-. If the total income during the financial year exceeds or is likely to exceed Rs. 2, 50,000/- Form 15G cannot be submitted.
Form 15H:If the individual is 60 years but less than 80 years of age, then the total income during the financial year should not exceed the basic exemption limit as per income tax i.e. Rs. 3,00,000/-
If the individual is 80 years of age or more, then the total income during the financial year should not exceed the basic exemption limit as per the income tax i.e. Rs.5,00,000/-.
Eligibility for 15G if in case of persons other than Individuals:
15G can be submitted by a HUF, Association of persons, Body of individuals & Artificial Juridical Persons if the total income during the financial year does not exceed the basic exemption limit as per the income tax i.e. Rs.2, 50,000/-.
Will a certificate be issued by the Company for the Tax deducted at source?
For the Tax deducted at source, Tax deduction certificates in the prescribed form 16A, giving details of the interest remitted to Income Tax Department will be sent on a quarterly basis if the interest on the deposit is paid quarterly.
For the Tax deducted at source (TDS) certificate Form 16A will be generated by the Company through the Tax Information Network (TIN) central system.
In case of salaried person, if the Income Tax is deducted at source from salary, can he /she furnish 15G/15H?
No. As salaried persons are also assesses form 15G/15H cannot be furnished
Can you open more than one account in the same order of names?
No. All deposits held in the same name, or in the same order of names (in case of joint deposits) are required to be clubbed together for the purpose of Income Tax computation.
Is it sufficient to furnish Form 15G / H once at the time of placing the deposit?
No. Form 15G/H must be furnished during renewal of every deposit as also whenever an additional deposit is made during the financial year.
Can a depositor, in case of urgent need of money, withdraw their deposits?
As per Reserve Bank of India directions, no withdrawal of deposit is permitted within three months from the date of Deposit/renewal of Deposit. (not applicable in the event of death of a depositor)
Can a withdrawal be made from the deposit after 3 months?
Yes. Premature withdrawal can be made after 3 months from the date of deposit/renewal as per the Directions of Reserve Bank of India and the terms and conditions of the Company.
Can premature proceeds be paid favouring the second/third Depositor?
No. Premature payments will be effected favouring the first depositor only.
Can the Company directly credit the Depositor’s designated bank account?
Yes. The payment can be sent directly to the Depositor’s designated bank account available in our records.
Is there any penalty for pre-mature withdrawal?
As per the Directions of RBI currently in force, premature repayment:
1. Up to 3 months from the date of deposit/renewal (Lock-in-period)@ No Repayment (Not applicable in case of premature repayment in the event of death of the depositor)
2. After 3 months but before 6 months@ No interest*
3. After 6 months but before the date of maturity@ The Interest payable shall be 2 per cent lower than the Interest rate applicable to a deposit for the period for which the deposit has run or if no rate has been specified for that period, then 3 per cent lower than the minimum rate at which deposits are accepted by the Company
*The above rates are also applicable for premature repayment in the case of death of a depositor. Premature repayments will be made only in favor of the first depositor
** In the event of death of a depositor, the Company shall repay the deposit prematurely, even within the lock-in period, to the surviving depositor/s in the case of joint holding with survivor clause, or to the nominee or the legal heir/s of the deceased depositor, on the request of the surviving depositor/s/nominee/legal heir, and only against submission of proof of death, and other necessary documents to the satisfaction of the Company.
Do you accept Non-Resident Indian (NRI) Deposits?
We accept deposits from NRIs on a non-repatriation basis. Deposits by NRIs are accepted only when the funds originate from their respective NRO Account.
NRI depositors must also submit the following declaration:
The amount deposited with Gove Finance Ltd. represents amount transferred from NRO account. Further this amount does not represent inward remittance from overseas to NRO account or transfer of fund from NRE/FCNR(B) account to NRO account.
The depositor has to furnish his NRO bank account number, as both the principal and the interest will be credited to the depositor’s NRO bank account. Tax will be deducted at the rates prescribed by the Income Tax rules in force from time to time from the interest amount irrespective of the quantum of interest.
Details of TDS with respect to Non-Resident Deposits
The limit of Rs.5,000/-on interest for the purpose of tax is not applicable. Tax rate will be 31.2% as per the current Income Tax rules (Effective 01/04/2018).
Declaration in Form 15G/H for non-deduction of tax at source is not applicable. FATCA (Foreign Account Tax Compliance Act) form must be furnished by the NRI depositor.
The FATCA form is available in the Deposit Application Form or can be downloaded from our website.
How can I renew the Deposit?
The Application Form together with the Term Deposit Receipt must be sent to us 15 days prior to the maturity of the Term Deposit Receipt bearing the Depositor’s signature on the reverse.
What are options for Renewal of a Cumulative Deposit Receipt?
An existing depositor can renew their deposit for either the Principal amount (interest accrued will be repaid) or alternatively the principal amount plus interest.
For any further queries,feel free to contact our Customer Care department
on:90030 33533 or through E-mail: [email protected]