General Instructions

Resident/Non-Resident (On non-repartriable basis) individuals, Minors through Guardian, Hindu Un-divided families (HUF), Trusts, Cooperative Societies, Domestic Companies.

Tax Benefits

  1. HUDCO Public Deposit Scheme qualifies under Section 80C (2)(xvi)(a) of Income-tax Act, 1961. Accordingly, the deposits with minimum lock in period of 5 years made under HUDCO Public Deposit Scheme will qualify for deduction from gross total income upto Rs. 1,50,000/-.
  2. The above tax benefit is only for individual and HUF investors.


  1. All new depositors shall provide proper introduction at the time of submitting deposit, introduction can be given by either the existing depositor or on the basis of one of the following i.e. Income tax permanent account number, Election identity card, Passport or Ration Card.
  2. Interest shall be rounded off to the nearest Rupee i.e., upto 50 paise will be ignored. Interest and deposit amount will be paid by crossed Account Payee Cheque payable at par of all branches of designated bank drawn in favour of the first name depositor.
  3. The interest on deposit will cease on the date of maturity e.g. if a deposit is maturing on 15th Oct 2013. The interest on deposit will not accrue after 15th Oct 2013. If the FD is not surrendered for repayment unless renewed, interest will accrue thereafter only if the deposit is renewed as per terms prevailing on the date of expiry.
  4. Income Tax will be deducted at source from interest in accordance with section 194 A of the Income Tax Act, 1961 i.e. if the interest payable exceeds Rs. 5000/- in aggregate in the current financial year. In cumulative option interest will be deemed to accrue every year as on 31st March of each financial year & interest will be compounded after deducting the tax amount unless form 15G/15H in duplicate as prescribed under income tax rules (except company & firm) is furnished to HUDCO latest by 15th March of each financial year. However in case of Non Cumulative option form 15G/15H should be furnished to HUDCO latest by 15th March of each financial year for the next financial year. Deduction of tax at source in case of trust will not be made if certificates under section 197 of Income Tax Act, 1961 issued by the concerned assessing officer of the trust or copy of the order under section 10 of the income tax under Income Tax Act 1961, if the trust is exempted under the above act, is submitted at by 15th March of each financial year. Form 15G/15H should only be furnished by the depositors.

Other Miscellaneous Provisions

  1. Deposits from minor(s) will be accepted through natural/legal guardian(s) provided the application from is signed by their natural or legal guardian, on their behalf.
  2. Where the due date of any payment falls on Sunday, Bank holiday or any other day on which the office remains closed, the payment will be made on the next following working day, without any additional interest.
  3. Interest for the part of month during which the deposit is made shall be paid along with interest for the next month in case of Regular Plus. For Regular Plus Scheme the half year shall be reckoned to end on 31st March and 30th September. For yearly option the first year will end on next following 31st March and the balance interest payable would be accordingly adjusted in the last maturity period. Quarterly option shall be reckoned to end on 31st March,30th June, 30th September & 31st December. Interest cheques for different options (Quarterly/Half yearly/yearly) shall be sent in advance on financial year basis ie. from 1st April to 31st March each year, after deducting tax, as applicable.
  4. Deposits once accepted under one scheme cannot be interchanged/split/Transferred/Transposed etc.before the expiry of the said deposit term under any circumstances.
  5. The aforesaid terms and conditions of acceptance of deposit are subject to rules and regulations framed by the Central Government, Reserve Bank of India/ National Housing Bank or any other competent authority from time to time.
  6. In case of cumulative deposits for the purpose of deduction of income Tax, interest will be deemed to accrue every year and tax will be deducted on the accrued interest in each financial year.
  7. In case of any deficiency of the company in servicing its deposits, the depositor may approach the National Consumers Disputes Redressal Forum, the State Level Consumers Disputes Redressal Forum or the District Level Consumer Dispute Redressal Forum for the relief.&
  8. The financial position of the company as disclosed and the representations made in the application form are true and correct and that the company and its Directors are responsible for the correctness and veracity thereof.
  9. The deposit acceptance activities of the company are regulated by the NHB. It must however be distinctly understood that the NHB does not undertake any responsibility for the financial soundness of the company or for the correctness of any of the statements or the representation made or opinion expressed by the company and for repayment of deposit/discharge of liabilities by the housing finance company.