(1)Save as provided in section 106, the amount payable to any person under section 47 shall, subject to the provisions of section 50,—(a)be paid in cash in a lumpsum if the amount payable does not exceed two thousand rupees; and(b)if the amount payable exceeds two thousand rupees the amount up to two thousand rupees shall be paid in cash and the balance shall be paid in non-transferable and non-negotiable bonds carrying interest at the rate of five and a half per cent per annum and of guaranteed face value maturing within a specified period not exceeding twenty years:Provided that the amount payable under the bonds under this clause may be paid in such number of instalments not exceeding twenty as may be prescribed.Provided further that the amount payable shall, subject to such rules as may be prescribed, be paid,-(i)in the case of a minor, a person who has attained the age of sixtyfive years a woman who has never been married, a small holder, a person subject to the prescribed physical or mental disability and subject to clause(ii), a widow,—(a)in a lumpsum where the amount payable does not exceed fifty thousand rupees,; and(b)where the amount payable exceeds fifty thousand rupees, the first fifty thousand rupees in a lumpsum and the balance in non-transferable and non-negotiable bonds carrying interest at the rate of five and half per cent per annum and of guaranteed face value maturing within a specified period not exceeding twenty years;(ii)in the case of a widow, if she so elects in writing, in the form of annuity during her life time, a sum determined in such manner as may be prescribed; which shall not be less than the net annual income referred to in sub-section (2) of section 72.Explanation:—For the purpose of this clause widow, minor and a person subject to physical or mental disability include, a woman who is a widow, a person who is a minor, a person subject to physical or mental disability respectively at the time when the amount payable is determined:Provided also that in relation to a small holder the second proviso shall have effect as if it was in force on and from the First day of March, 1974.(2)Notwithstanding anything in sub-section (1), on or after 1st March 1984, the balance and interest thereon payable in accordance with clause (b) of sub-section (1) of the second proviso to the said sub-section shall, in lieu of the bonds specified therein, be paid in the following manner, namely:—(a)the interest accrued at the rate of five and a half per cent per annum till 1st March, 1984 remaining unpaid shall be paid in five consecutive annual, as far as may be, equal instalments commencing from 1st March, 1984 in National Savings Certificates;(b)the whole or, as the case may be, part of the balance specified in sub-section (1), payable before 1st March, 1984 remaining unpaid shall be paid in five consecutive annual, as far as may be, equal instalments commencing from the said date in National Savings Certificates; and(c)the whole or, as the case may be, part of the said balance payable on or after 1st March, 1984 shall be paid in ten consecutive annual, as far as may be equal instalments commencing from the said date in National Savings Certificates:Provided that along with each of the instalments referred to in items (b) and (c), the interest thereon from 1st March, 1984 at the rate of five and a half per cent per annum upto the date of payment thereof shall also be paid in National Savings Certificates.
