Prologue to Product:
In response to the adversities encountered by widows, the senescent, and, as of the first day of 2004, differently-abled individuals and minors with disabilities through their custodians, the Government inaugurated Behbood Savings Certificates (BSCs) in the year two thousand and three. BSCs are procurable in the stated denominations, commencing profit disbursement from the acquisition date on a monthly cadence.
Eligibility for Investment:
BSCs are accessible for acquisition by any Pakistani citizen who falls under the following categorizations:
- Elders aged sixty or beyond,
- A widow remaining unmarried,
- Two individuals eligible under the aforementioned criteria, jointly,
- The differently-abled possessing a NIC adorned with a Disability insignia, and minors with disabilities via a Guardian.
Fiscal disbursements can be executed either jointly or to either party, contingent upon the penned consent of the counterpart (Joint Class-A) or to either party unilaterally (Joint Class-B).
Acquisition Methodology:
BSCs are solely available at National Savings Centers (NSC), necessitating the completion of SC-1 (Application Form), which is provided gratis at issuance offices.
Prerequisites Alongside Application Form:
For Senior Citizens:
- A facsimile of the Computerized National Identity Card (CNIC)/National Identity Card.
For Overseas Pakistanis:
- National Identity Card for Overseas Pakistanis (NICOP).
For Widows:
- CNIC/NICOP,
- A facsimile of the spouse's Death Certificate, duly authenticated by the pertinent authority,
- An affidavit on stamped paper asserting non-remarriage at the time of deposit, verified by a Notary Public/Oath Commissioner, adorned with their seal and stamp,
- Subsequent revelation of remarriage necessitates the reimbursement of accrued amounts in accordance with regulations.
Mode of Deposit:
BSCs may be procured via cash deposit at the issuing office or through cheque/draft/pay-order presentation. In instances of cheque/draft/pay-order deposits, certificate issuance ensues post-realization and clearance advice receipt. Conversely, immediate issuance is guaranteed against cash payments.
Investment Threshold:
- Minimum: Rs. 5,000/-
- Maximum:
- For individual investors: Rs. 7.5 million
- For Joint investors (Categories a or b): Rs. 15 million
Encashment:
BSCs may be liquidated post-issuance, subject to service charge deductions as follows:
- Encashment prior to the completion of 1, 2, 3, and 4 years from the date of purchase incurs service charges of 1%, 0.75%, 0.50%, and 0.25% of the face value, respectively. Post-4 years, encashment is exempt from charges.
- Certificates acquired, purchased, or reinvested on or subsequent to 15-11-2010 shall not be eligible for reinvestment upon maturity.
Return on Investment:
The yield stands at 16.08%, equating to Rs.1340 monthly.
Taxation and Zakat:
Profits from BSCs are exempt from withholding tax and Zakat, offering a fiscal sanctuary for the designated beneficiaries.
This exposition offers a meticulous overview of Behbood Savings Certificates, delineating the nuances of this governmental initiative aimed at ameliorating the financial stature of its vulnerable citizens.
FAQ's:
FAQ 1: What are Behbood Savings Certificates (BSCs), and who can benefit from them?
Answer: Behbood Savings Certificates (BSCs) are a specialized financial product introduced by the government on July 30th, 2003, to provide economic support to the most vulnerable segments of society, including widows, the elderly, and differently-abled individuals, along with minors with disabilities under the guardianship. Available in denominations ranging from Rs. 5,000 to Rs. 1,000,000, these certificates offer a monthly profit distribution for a period of ten years, aimed directly at enhancing the livelihoods of eligible Pakistani citizens within these categories.
FAQ 2: How can one become eligible for and acquire BSCs?
Answer: Eligibility for BSCs extends to Pakistani citizens who are either elders aged sixty years and above, widows who remain unmarried, eligible individuals applying jointly, or differently-abled persons with a NIC featuring a Disability logo, and minors with disabilities through a guardian. BSCs can be acquired at National Savings Centers by submitting a completed SC-1 Application Form, available free of charge. Required documentation varies by category, including ID proofs, death certificates for widows, and special documentation for differently-abled individuals.
FAQ 3: What are the investment limits, encashment policies, and financial benefits of BSCs?
Answer: The minimum investment for BSCs is set at Rs. 5,000, with a maximum limit of Rs. 7.5 million for individual investors and Rs. 15 million for joint investors. BSCs can be encashed at any time after issuance, with service charges applied only within the first four years post-purchase, decreasing progressively from 1% to 0.25%. After four years, no charges are applied. Importantly, certificates issued after November 15, 2010, are not eligible for reinvestment upon maturity. The yield rate for BSCs is a lucrative 16.08%, translating to a monthly return of Rs.1340, and notably, profits are exempt from withholding tax and Zakat, ensuring a tax-free income stream for beneficiaries.
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