The Government of Pakistan
introduced Defence Savings Certificate scheme in the year 1966. The
scheme has specifically been designed to meet the future requirements of
the depositors. This is 10 years' maturity scheme with
built in feature of automatic reinvestment after the maturity. These
certificates are available in the denominations of Rs.500,
Rs.1000, Rs.5,000, Rs.10,000, Rs.50,000, Rs.100,000, Rs.500,000 and
Who Can Invest .
These certificates can be purchased by a single
adult, a minor, two adults in their joint names with the options of
payable to the holders jointly (Joint-A ) or payable to either
(Joint-B). An adult can also purchase these certificates on behalf of a
single minor, two minors jointly or himself/herself and a minor jointly.Institutions may also invest individual funds such as pension, gratuity, superannuation, contributory provident funds and trusts etc.
How To Purchase.
These certificates can be purchased from any
National Savings Centre (NSC), Pakistan Post Offices (PPO), Authorized
branches of Scheduled
Banks and State Bank of Pakistan (SBP) by filling in a
prescribed form called
SC-1, which is available at
all the above offices of issue free of cost. A copy of
the Computerized National Identity Card (CNIC) or in case of a foreign national, a copy of
the Passport is required to be attached with the application form.
To download application form in
editable Adobe Acrobat format, please click here.
Mode of Deposit.
These certificates can be purchased by depositing
cash at the issuing office or by presenting a cheque. The certificates
shall immediately be issued on receipt of cash. However, in case of
deposit through cheque the certificates shall be issued from the date of
realization of the cheque after receipt of the clearance advice.
What Is The Investment Limit.
The minimum investment limit is Rs.500/-,
however, there is no maximum investment limit in this scheme.
What About Redemption.
These certificates are encashable at par any time
after the date of purchase. However, no profit is payable
if encashment is made before completion of one year.
Further, certificates purchased on or after 15-11-2010 can not be automatically reinvested.
However, other better options are available for investment in National Savings Schemes.
What is the return.
In this scheme the profit is paid on maturity or
encashment for completed years. Every Rs.100,000/- will become
Rs.106,000/-, Rs.113,000/-, Rs.122,000/-, Rs.134,000/-, Rs.149,000/-,
Rs.168,000/-, Rs.192,000/-, Rs.223,000/-, Rs.264,000/- and Rs.318,000/-
on completion of 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10 years, respectively.
These rates are effective from 1st January, 2014. The average compound
rate of return on maturity presently works to 12.26% p.a. For any other
time period rates table is also available on website.
Tax & Zakat Status.
Exemption of deduction of Withholding tax has been withdrawn w.e.f 01-07-2013 on profit of investment upto Rs.150,000 . W.e.f. 1st July,2014 the rate of tax to be deducted under Section 151 of Income Tax Ordinance 2001 shall be 10% of the yield or profit for Filers and 15% of the yield or profit paid for Non-Filers. Provided that for a non-filer, if the yield or profit paid is rupees five hundred thousand or less, the rate shall be 10%. The Zakat is collected at
source as per rules.