Additional Emoluments (Compulsory Deposit) Act : Deposit to carry simple interest. Indian Bare Acts :

Additional Emoluments (Compulsory Deposit) Act,1974

Act No : 37

Section : Deposit to carry simple interest.

7. Deposit to carry simple interest. (1) Every amount credited under section 6, in relation to an employee in a Deposit Account, shall carry simple interest at a rate, which shall be two and a half per cent. over and above the bank deposit rate. (2) The interest due on the amount credited in any Deposit Account shall be calculated in such manner as may be specified in the scheme. (3) Interest accruing on amounts credited under section 6 to any Deposit Account shall ensure to the benefit of the employees in relation to whom such amounts have been credited. (4) For the purpose of the deductions under section 80L of the Income-tax Act, 1961, (43 of 1961.) interest received on a deposit under this Act shall be deemed to be interest received on a deposit with a banking company to which the Banking Regulation Act, 1949, (10 of 1949.) applies.