How is the market value of Post Office RDA determined?
Since a recurring deposit is not traded in the secondary market, it does not have a market value. Investors can get regular updates from their post office on the accumulated sum. What is the mode of holding of RDA? An RDA can be opened by an individual adult as a single person account, two adults in a joint mode, or by a guardian on behalf of the minor who has attained the age of 10 years in his own name. RDA can also be held by a HUF, Trust, regimental fund, welfare fund, company, banking company, corporation, association, institution, registered society, or local authority. Accounts can also be opened in the name of a minor or a person of unsound mind. TAX IMPLICATIONS Although the investment in post-office RDA is itself not subject to tax benefits, interest income upto Rs 9,000 per annum is exempt from tax under Section 80L of the Income Tax Act, 1961.
