Public Deposit

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.