This scheme is launched in year 2004 by government of India for providing the income to the person who is 60-year-old.
Under this scheme one can invest up to 15 lacs for 5 years. The fund will be locked for 5 years.
Government has provided the facility to withdraw the amount in case of emergency but in such case investor has to pay penalty up to 1.5%. This will be charged on invested amount. If the withdrawal is made before completion of 2 years then the penalty would be 1.5% and after 2 years 1% will be charged.
This scheme provides the highest interest rate among all other scheme provided by government. Interest rates may fluctuate as per the government guidelines. Invester gets quarterly payment and same will be taxable. TDS will apply if form 15G or 15H is not submitted.