POSTMEN / MTS EXAMINATION 2025. - STUDY MATERIALS 1.

 

Postal Assistant/ Postmen/MTS Examination – Refresh on Post Office Savings Account (SB) -7'

Post Office Time Deposit Account (TD)
171. How is the interest on a TD account credited to the depositor?

 a) Monthly in cash b) Annually, and can be credited to the depositor's savings account c) At maturity only d) Quarterly in cash Answer: b) Annually, and can be credited to the depositor's savings account

172. For a 1-year TD account opened from January 1, 2024, what is the interest rate?

 a) 6.8% b) 6.9% c) 7.0% d) 7.1% Answer: c) 7.0%

173. For a 2-year TD account opened from January 1, 2024, what is the interest rate? 

a) 7.0% b) 7.1% c) 7.2% d) 7.3% Answer: b) 7.1%

174. For a 3-year TD account opened from January 1, 2024, what is the interest rate?

 a) 7.0% b) 7.1% c) 7.2% d) 7.3% Answer: c) 7.2%

175. Is TDS deducted on interest earned from a Post Office Time Deposit? 

a) No b) Yes, if interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). c) Yes, always. d) Only for deposits above ₹1 lakh. Answer: b) Yes, if interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).

176. If a TD account is closed after 1 year, what is the impact on interest for the completed years? 

a) No change. b) Interest will be calculated at the TD rate applicable for the completed number of years minus 2%. c) Interest will be calculated at PO Savings Account rate. d) Interest is forfeited. Answer: b) Interest will be calculated at the TD rate applicable for the completed number of years minus 2%.

177. Can a TD account be transferred from one Post Office to another? 

a) No b) Yes c) Only 5-year TD d) Only after 1 year Answer: b) Yes

178. What is the extension period for a 2-year TD account after maturity? 

a) 1 year b) 2 years c) 3 years d) 5 years Answer: b) 2 years

179. What is the extension period for a 3-year TD account after maturity?

 a) 1 year b) 2 years c) 3 years d) 5 years Answer: c) 3 years

180. What is the extension period for a 5-year TD account after maturity? 

a) 1 year b) 2 years c) 3 years d) 5 years Answer: d) 5 years
National Savings Certificates (NSC)

181. Are investments in NSC eligible for tax deduction under Section 80C of the Income Tax Act?

 a) No b) Yes c) Only for amounts up to ₹50,000 d) Only for senior citizens Answer: b) Yes

182. Who can purchase a National Savings Certificate?

 a) Only adults b) An adult, a minor (above 10 years in own name), a guardian on behalf of a minor or a person of unsound mind, or joint accounts up to 3 adults. c) Only individuals with a savings account. d) Only those who are salaried. Answer: b) An adult, a minor (above 10 years in own name), a guardian on behalf of a minor or a person of unsound mind, or joint accounts up to 3 adults.

183. What is the maximum number of joint account holders allowed for an NSC? 

a) 2 b) 3 c) 4 d) No limit Answer: b) 3

184. What happens to an NSC if the account holder dies before maturity? 

a) It continues to earn interest. b) It can be prematurely closed and paid to the nominee/legal heirs. c) It is transferred to a government fund. d) The nominee must re-invest. Answer: b) It can be prematurely closed and paid to the nominee/legal heirs.

185. Can an NSC be issued in electronic mode (e-mode)? 

a) No, only physical certificates. b) Yes, if account is opened at a Post Office. c) Only for specific denominations. d) Only at banks. Answer: b) Yes, if the account is opened at a Post Office. (The document mentions e-mode or passbook mode)

186. When an NSC is prematurely closed due to forfeiture by a pledgee, what is the condition for the pledgee?

 a) Must be a private bank. b) Must be a Gazetted officer. c) Must be a registered charity. d) Must be a family member. Answer: b) Must be a Gazetted officer.

187. Is the interest earned on NSC taxable at maturity? 

a) Yes, fully taxable. b) No, it's tax-exempt. c) It is compounded annually, and the accrued interest for the first four years is deemed reinvested and thus qualifies for 80C deduction. Only the final year's interest is taxable. d) Only if the amount is above ₹10 lakh. Answer: c) It is compounded annually, and the accrued interest for the first four years is deemed reinvested and thus qualifies for 80C deduction. Only the final year's interest is taxable.

188. Can an NSC be transferred from one person to another during its tenure (other than on death or pledging)?

 a) Yes b) No c) Only after 3 years d) Only within family Answer: b) No (Implied by the specific conditions for transfer)

189. What is the purpose of the NSC VIII Issue? 

a) To offer monthly income. b) To double the investment in a short period. c) To encourage small savings with tax benefits and fixed maturity. d) To provide pension. Answer: c) To encourage small savings with tax benefits and fixed maturity.

190. Does NSC offer a loan facility?

 a) Yes b) No c) Only in special cases d) Only after 3 years Answer: b) No (The document doesn't mention loan facility for NSC)

Kisan Vikas Patra (KVP)
191. What is the minimum denomination in which KVP certificates are issued? 

a) ₹500 b) ₹1,000 c) ₹5,000 d) ₹10,000 Answer: b) ₹1,000 (and in multiples of ₹1000)

192. What are the available denominations of KVP certificates?

 a) ₹1,000, ₹2,000, ₹3,000, ₹4,000 b) ₹1,000, ₹5,000, ₹10,000, ₹50,000 c) ₹1,000, ₹5,000, ₹10,000, ₹25,000, ₹50,000 d) ₹1,000, ₹5,000, ₹10,000, ₹50,000, ₹1,00,000 Answer: d) ₹1,000, ₹5,000, ₹10,000, ₹50,000 and ₹1,00,000

193. Who can invest in Kisan Vikas Patra?

 a) Only farmers b) An adult, a guardian on behalf of a minor or a person of unsound mind, joint account (up to 3 adults). c) Only individuals residing in rural areas. d) Only those with a specific income. Answer: b) An adult, a guardian on behalf of a minor or a person of unsound mind, joint account (up to 3 adults).

194. What is the maturity period for KVP at the interest rate of 7.5% compounded annually?

 a) 5 years b) 7 years c) 9 years 7 months (115 months) d) 10 years Answer: c) 9 years 7 months (115 months)

195. Is the maturity amount of KVP subject to Income Tax? 

a) Yes b) No c) Only if it exceeds ₹1 lakh d) Only if withdrawn before maturity Answer: b) No (The document does not mention taxability for KVP maturity amount, which is generally tax-exempt for the principal invested, and only the interest portion is taxable, but for KVP, it is typically tax-free at maturity)

196. How many months after deposit can a KVP be prematurely encashed?

 a) 6 months b) 12 months c) 30 months (2 years 6 months) d) 36 months Answer: c) 30 months (2 years 6 months)

197. Under what condition can a KVP be prematurely closed by order of a court? 

a) For property dispute b) For criminal proceedings against the holder c) For any reason deemed fit by the court d) For divorce settlements Answer: c) For any reason deemed fit by the court (Implied by "On order by court")

198. Can a KVP be transferred from one person to another?

 a) No b) Yes, under specific conditions such as death of holder, court order, or pledging. c) Only to family members. d) Only after 5 years. Answer: b) Yes, under specific conditions such as death of holder, court order, or pledging.

199. When a KVP is pledged, to whom can it be pledged? 

a) Any private individual b) President of India, Governor of a State, RBI, Scheduled Banks, Co-operative Societies, Co-operative Banks, Corporations, Govt. Companies, Local Authorities, Housing Finance Companies c) Only to nationalized banks d) Only to immediate family members Answer: b) President of India, Governor of a State, RBI, Scheduled Banks, Co-operative Societies, Co-operative Banks, Corporations, Govt. Companies, Local Authorities, Housing Finance Companies

200. What is the primary objective of the Kisan Vikas Patra scheme? 

a) To provide monthly income b) To provide a safe and assured way to double money over a fixed period c) To fund agricultural projects d) To offer pension benefits Answer: b) To provide a safe and assured way to double money over a fixed period.