The Post Office Savings Account is one of the most well-known and accessible savings accounts in India. Under Section 80TTA of the Income Tax Act, a Post Office account is eligible for tax exemption for interest of up to Rs 10,000 (for all savings accounts combined) earned in a fiscal year. India Post has outlined specific procedures that must be followed in order to resolve claims in case of a Post Office Savings Account Holder’s demise. In case of nomination, a death certificate, a nomination claim form, and the Know Your Customer (KYC) documentation are required to be submitted for settling a claim.
As per the Post Office, while filing a claim, legal proof must be given. The claimant needs to provide a letter of administration, proof of probate of the will, or a Succession Certificate. The High Court issues a copy of the will along with a probate of it and the court seal. Along with the KYC credentials, the person claiming needs to also submit the legal documentation, claim form, and the account holder’s death certificate.
In case of no nomination, the death certificate, claim form, Annexure-I (Letter of Indemnity), Annexure-II (Affidavit), Annexure-III (Letter of Disclaimer of Affidavit), deponents, witnesses, KYC papers of the claimant, sureties, etc. have to be submitted. If claims are made for deposits of more than Rs 5 lakh without nomination, the claim can only be satisfied via a Succession Certificate. Also, claims up to Rs 5 lakh without nomination may be settled 6 months after the depositor’s demise.
Account holders and depositors need to submit an application in the required form SB 10(B)/NC-32 with their passbooks and KYC papers if they want to move their accounts or certificates. A transfer application can be submitted by either the transferring office or the transferee office. However, the relevant Head Post Offices will be handling the transfer process.
It should be noted that 4 percent interest is offered in the Post Office Saving Scheme. The account holders are required to keep a minimum balance of Rs 500 in the account. If the balance is less than Rs 500, then Rs 100 is going to be deducted as account maintenance fine.
