New Delhi: National Savings Certificate (NSC) is one of the most traditional and preferred investment schemes in the country. Along with capital safety and assured interest rate, investors also get NSC tax benefits of Rs 1.50 lakh under Section 80C of the Income Tax Act, 1961.
NSC Interest Rate
The government of India revises interest rate of small savings schemes like NSC on quarterly basis. As per least revision, NSC interest rate in Q2 FY25 stands at 7.7 per cent. NSC interest is not subject to Tax Deducted at Source (TDS).
NSC Eligibility Criteria
Any citizen of India can invest in NSC. Parents on behalf of their children can also invest in this small savings scheme. NSC minimum age limit is 10 years. Documents needed for account opening – ID proof, photograph and address proof.
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How to invest in NSC?
One can opt for NSC online investment process as well as offline. One can invest online in NSC on website of any bank or that of post office. An individual can also pay a visit to any bank or post office to sign up for the process.
NSC Time Period
NSC time period is of five years. Investor cannot extend maturity period beyond five years. If the investor leaves the NSC maturity amount after five years, then, he will get interest on that amount according to his savings account. If he again wants to invest in NSC, he will have to open a new account alltogether. Earlier, Post Office used to issue NSC certificates of 10 years but the government of India cancelled it and now 10 years NSC certificates are not available.
NSC Minimum Investment
Rs 1,000 is the minimum investment that one has to make in a single financial year. As there is no maximum limit, an individual can invest any amount in this small savings scheme.
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NSC Tax Benefits
The investor gets NSC tax benefits of Rs 1.50 lakh under section 80C of the I-T Act, 1961. Interest earned on NSC is taxable at maturity which is after five years of the account opening date. At one maturity, the investors is liable to pay income tax on interest earned on NSC. One has to mention the interest earned under the head ‘Income From Other Sources’ in the income tax return form.
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NSC time period is of five years. NSC cannot be extended beyond maturity. In the second quarter of financial year 2024-2025, the government of India kept NSC interest rate unchanged at 7.7 per cent. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
