The National Saving Certificate (NSC) is a post office savings scheme which qualifies for deduction under Section 80C of the Income Tax Act as well as saves income tax. There is no maximum limit for investment in National Savings Certificate, the minimum amount being Rs. 1000 and in many rupees. 100. The National Savings Certificate Interest Rate 2021 is set at 6.6% (from 1 April 2021) on Combined Pa and is to be checked using the National Certificate Certificate Calculator. Apart from this, people can first check the NSC interest rate chart and fill the NSC online application form to apply for this central government-run India Post Office Scheme.
India Post Office National Saving Certificate (NSC)
The NSC interest rate chart shows that the NSC interest rate equals with other schemes like Public Provident Fund (PPF), Kisan Vikas Patra (KVP), Sukanya Samriddhi Yojana, Post Office Savings Account, Recurring Deposit (RD) Account, Senior Citizen Savings is. Scheme (SCSS), Time Deposit (TD) Account, Monthly Income Scheme (MIS). People can now compare and check nsc vs ppf vs kvp vs ssy vs scss vs mis vs rd vs td vs post office saving account.
In this article, we will tell you about maturity period of NSC account, deposit, pledge of account, premature closure and transfer of account. The interest rate of the National Savings Scheme is low and taxable only at the time of maturity. People can use the National Savings Certificate as collater and take loans from banks. NRIs, HUFs and Trusts are not eligible to purchase and purchase National Saving Certificate (NSC). People can compare all post office schemes before investing.
Types of National Savings Cards in NSC Scheme
There are 3 types of National Savings Certificates which are as follows: –
- Single holder type certificate – Any person can buy a National Saving Certificate for himself or on behalf of a minor.
- Joint type certificate – This type of NSC is issued jointly to 2 adults, payable to both NSC account holders.
- Joint b type certificate – This NSC certificate is issued jointly to type 2 adults payable to any of the NSC account holders.
People can redeem the National Savings Certificates only after the NSC maturity period on submission of the certificate in the post office. Further, on receipt of maturity amount, the account holder will have to sign on the back of the NSC certificate and hand over the certificate to the post master.
National Savings Certificate Interest Rate
The NSC interest rate is 6.8% per annum but payable at maturity. National savings certificate interest amount is taxable. The NSC account holder does not receive accrued interest, but it is invested annually and compounded annually. Also as per National Saving Certificate Calculator, Rs. 1000 will be made. 1389.49 after 5 years. Since NSC is a specific instrument under Section 80C of the ITC Act, taxpayers can claim this interest amount for tax deduction.
For this reason, taxpayers must first show this interest amount as income and then apply for tax deduction. However, customers can claim a maximum tax deduction of up to Rs. 1.5 lakhs.
Who can open National Savings Certificate Account
- A single adult
- Joint account (up to 3 adults)
- On behalf of a minor on behalf of a guardian or a person of untrue mind
- Minor above 10 years in his name
National Savings Letter Account Opening Form
National Savings Certificate account opening form is available on the official link https://www.indiapost.gov.in/Financial/Pages/Content/Post-Office-Saving-Schemes.aspx
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On this page, click on the National Savings Letter link and in this section, click on “Forms availableClick on the link or the link directly here – https://www.indiapost.gov.in/VAS/Pages/Form.aspx#SavingCert Certificate
In the newly opened page, click on the download PDF link in front of “Application Form for Purchase of Certificate” to open the National Savings Certificate Purchase Online Form as given below: –
Fill this NSC form and submit it to the nearest post office branch, approve it and then you will be able to buy the certificate.
National saving certificate calculator
Apart from this, customers can calculate their interest amount in National Savings Certificate Scheme NSC using the link given below: –
Tax Benefits of National Savings Certificate
Customers should invest in the National Savings Certificate Scheme for the following reasons: –
- People can save income tax on income up to Rs. 1.5 lakhs.
- NSC offers a guaranteed interest rate of 6.8% per year and can be verified using the National Savings Certificate Calculator.
- The National Savings Certificate maturity period is only 5 years.
- This savings scheme is easily available in all post offices.
- In addition, interest accrues annually and is reinvested in default.
Along with income tax exemption, accrued interest is also added to the original investment and is also eligible for tax breaks. for example. If an NSC certificate is priced at Rs. 1000, then the person will get a tax break on the initial investment in 1 year. Apart from this, people will also get tax exemption on additional NSC purchases and interest earned.
Who can invest – maximum and minimum investment amount
Anyone looking for a safe investment option can invest in guaranteed interest and capital security NSC. This investment option is readily available compared to other tax saving methods. However, the NSC is not able to beat the inflationary beating results in other savings such as tax-saving mutual funds and the National Pension System. The minimum investment amount is Rs. 1000 and thereafter in multiples of Rs. 100 while there is no maximum limit.
(i) Minimum Rs. 1000 and in many rupees. 100, no maximum limit.
(ii) Any number of accounts can be opened under the scheme.
(iii) Taxes qualify for deduction under Section 80C of the Income Tax Act.
Any person who wants to open a National Savings Certificate account can only pay Rs. Can do this through a minimum investment of Rs. 1000. Further, there is no maximum limit and Rs. Can buy any denomination of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000 and Rs. 10,000 Later, the candidates will receive the interest amount which can be verified using the National Savings Certificate Calculator.
National Savings Certificate Payment – NSC Purchase
To purchase an NSC account, the buyer has to submit Form A. For this, buyers can submit payment through cash, check, payment order, demand draft drawn in favor of the postmaster. In addition, candidates can pay from the withdrawal funds of the Post Office Savings Bank Account.
Accordingly, the postmaster will issue a new NSC certificate on the spot or provide a provisional slip for the purchase of the certificate. These National Savings Scheme nss certificates can also be transferred from 1 post office to another.
NSC vs PPF vs KVP vs ELSS vs NPS vs FD
Here we are comparing NSC to other tax saving instruments like Equity Linked Saving Schemes (ELSS), National Pension System (NPS), Public Provident Fund (PPF) and Tax-Saving Fixed Deposits (FDs). This comparison is based on the National Savings Certificate Interest Rate, Lock in Period and Risk Profile: –
NSC Comparison with Other Schemes
|Investment||rate of interest||Lock in period||The risk|
|National Savings Certificate (NSC)||6.8% Mixed Pay (Guarantee)||5 years||risk free|
|ELSS Fund||12% to 15% (required)||3 years||Market risk|
|Public Provident Fund (PPF)||7.1% Compounded Pay (Guarantee)||15 years||risk free|
|National Pension System (NPS)||8% to 10%||Until retirement||Market risk|
|Kisan Vikas Patra (KVP)||6.9% mixed PA||9 years 10 months||risk free|
|Fixed deposit||5.5% to 6.7% (Guaranteed)||5 years||risk free|
National Savings Letter Issuance and Maturity Period
The deposit will mature upon completion of five years from the date of deposit. There are 2 types of NSC issues – NSC VIII issue and NSC IX issue. Central Government. Has closed the NSC IX issue in December 2015. Accordingly, only NSC VIII is open for membership and comes with a lock over a period of 5 years. There is no TDS on the interest earned so the customer has to pay the applicable tax on the total maturity value.
Loan on nsc issue – People can also take loans from banks against their investment in National Saving Certificate Scheme NSC. For this reason, the subscriber has to transfer his certificate in the name of the bank from which he wants to take a loan. However, people cannot perform premature NSC withdrawal.
NSC Enrollment Facility and Issue of Duplicate Certificates
People can enroll at the time of purchase after filling Form 2 or before NSC maturity in Form 2 and make their nomination. This account holder can claim maturity amount if the original account holder dies. This nominee can encash NSC at any time before or after NSC maturity and can do the following: –
- Encash the National Savings Scheme NSS certificate.
- Subdivision of NSC certificate into suitable denominations in favor of individual nominees.
For this, the nominee has to inform the postmaster about the death of the original account holder by submitting a death certificate.
National Saving Certificate – Premature Ejaculation / Withdrawal
Premature withdrawal does not apply in case of NSC. However, premature Encounter of NSC can be done before 5 years under the following conditions: –
- Single account in joint account, or on death of any or all account holders.
- Upon confiscation by pledge to be a gazetted officer.
- On the order of the Court of Law.
If the National Savings Certificate Scheme (NSC) account is encoded within 1 year, no interest is paid. If withdrawal occurs after 1 year, the candidates will get interest, but with a discount.
Undertaking account in National Savings Certificate
NSCs can be pledged or transferred as security to the NSC, by submitting the prescribed application form to the respective post office supported with the letter of acceptance from the pledge. The following officers can be transferred / pledged.
-> President of India / Governor of the state.
-> RBI / Scheduled Banks / Co-operative Societies / Co-operative Banks.
-> Corporation (Public / Private) / Government. Company / Local Authority.
-> Housing Finance Company.
Transfer from 1 person to another account in National Savings Certificate Scheme
-> NSC can only be transferred from one person to another on the following conditions: –
(i) Nominee / legal heir on death of the account holder.
(ii) On the death of the joint holder (s) of the account holder.
(ii) On order by the court.
(iii) On pledge of account to the designated authority.
National Savings Letter VIII Issue Rules
The National Savings Certificate can be checked using the eighth issue rule link – https://www.indiapost.gov.in/VAS/DOP_PDFFiles/Savings%20Bank/National%20Savings%20Certports%20%28VIIIth%20Issue%29%20%cheme%20%202019%20English.pdf
National Saving Certificate – Highlights at a Glance
Important features and main features of National Savings Letter are as follows: –
|CScheme||Rate of interest||Minimum and maximum balance||important features|
|National Savings Letter – NSC VIII Issue||
||Minimum Rs. 1000 and multiples of Rs. 100, no maximum limit||
– Also for any query, candidates can visit the official website indiapost.gov.in