Govt. of India Amends Senior Citizen's Savings Scheme
The Ministry of finance (DEA) Govt. of India in exercise of the powers conferred by Section
15 of the Govt. Savings Banks Act 1873 (5 of 1873) has amended Senior Citizen's Savings Scheme Rules 2004 vide Notification No. GSR 176 (E) -dated 23.3.2006, These Rules are called as Senior Citiizen's Savings Scheme (Amended) Rules 2006 and these Rules have come into force from the date of their publication in the Official Gazette.

Under the amendment a depostor may apply in FORM G enclosing the passbook
thereto, for transfer of his account from one deposit ofice to another provided 1hat where the deposit is Rs. One lakh or above, a transfer fee of Rs. 5 per lakh of deposit for the first transfer and RS. 10 per lakh of deposit for the second and subsequent transfers shall be payable by the depositor.

Govt. of India Clarifies issues relating to
Tax Deduction at Source on Senior Citizen's Savings Scheme
Ministry of Finace (Deptt. of Economic Affairs) Govt. of India has clarified the issues relating to tax deduction at source in respect of the interest payable under the Sr. Citizen's Savings Scheme 2004 in consultation with Central Board of Direct Taxes vide their Notification No. F.No. 2-8/2004-NS.II dated 28.3.2006.

Since the interest payments under Sr. Citizen's Savings Scheme 2004 ~as not been exempted
from deduction of tax at source, Post Offices and Banks are required to deduct Income Tax at Source. It has been further clarified that the facility of furnishing Form No. 15-H {Prescribed under the Income Tax Rule 1962) is available only to a person {payee) resident in India and who is of the age of 65 years or more at any time during the previous year as under Income Tax Act, a person who has attained 65 years or more at any time during the previous year only is treated as a Senior Citizen.

Source : nsiindia.gov.in/pdfs/apri06-eng.pdf