The National Savings Certificate (NSC) is a government -backed investment scheme, which is available through Indian post offices. The scheme provides a safe and attractive investment option for small and medium -income investors. Investing in NSC not only gives you guaranteed returns, but also gives tax benefits. The main objective of this scheme is to provide tax benefits to investors under Section 80C of the Income Tax Act.
To invest in the NSC scheme, you have to go to any post office and fill the application form along with the necessary documents. The scheme comes with a lock-in period of 5 years, which means that you cannot withdraw your money before 5 years, except for some special circumstances. Investing in NSC gives you an interest rate of 7.7% per year, which is compounded annually.
National Savings Certificate (NSC) Overview
The table below has the main details of the NSC scheme:
| Description | Expansion of details |
| Interest rate | 7.7% per year, annual compound |
| Minimum investment | ₹ 1,000 |
| Maximum investment | No limit |
| Lock-in period | Five years |
| risk profile | Low risk |
| tax benefits | Under Section 80C of Income Tax Act ₹ 1.5 lakh |
| Investment process | Filling the application form in the post office |
| Necessary documents for investment | Identity card, address proof, etc. |
Benefits of National Saving Certificate
Investing in NSC scheme gives many benefits:
- Guaranteed Return: Investing in NSC gives you a guaranteed interest rate of 7.7% per year, which is compounded annually.
- Tax Benefits: By investing in NSC, you get tax exemption on investment of up to ₹ 1.5 lakh under Section 80C of the Income Tax Act.
- Low Risk: This scheme is low -risk, which makes it a safe investment option.
- No maximum investment limit: There is no maximum limit to invest in NSC, so that you can invest according to your requirement.
How to invest in National Saving Certificate
To invest in NSC you have to follow the following stages:
- Go to the post office: Go to your nearest post office and get the NSC application form.
- Submit the required documents: submit photocopy of identity card, address proof, and other necessary documents.
- Deposit investment amount: deposit a minimum amount of minimum ₹ 1,000, which can be in multiples of ₹ 100.
- Investment in passbook or electronic mode: You can invest in passbook or electronic mode, which requires online banking.
Return of National Saving Certificate Rules
The following are the Return Rules of NSC:
- 5-year lock-in period: It is not possible to withdraw money before 5 years after investing in NSC, except for certain circumstances.
- Premature return: If you withdraw money within 1 year, you will not get any interest. After withdrawing money after 1 year, you will also get interest.
- Return in special circumstances: If the investor dies or the court order, the premature return is possible.
Tax benefits of National Saving Certificate
By investing in NSC, you get tax benefits under Section 80C of the Income Tax Act. This benefit is available on investment of up to ₹ 1.5 lakh. The interest of NSC is compounded annually, but this interest is not taxable annually; Rather it is taxable on maturity or with extraction.
Documents required for National Saving Certificate
To invest in NSC you will need the following documents:
- Identity Card: Aadhar Card, PAN Card, Voter ID Card, etc.
- Address proof: Electricity bill, water bill, etc.
- Photo: Passport Size Photo.
- Aadhaar number and PAN number: Now Aadhaar and PAN are mandatory for new accounts.
Comparison of National Saving Certificate with other schemes
NSC can be compared to other savings schemes such as Public Provident Fund (PPF) and Fixed Deposit (FD). Investing in NSC gives you guaranteed returns and tax benefits, making it an attractive option.
Important things for investment in National Saving Certificate
Some important things should be kept in mind before investing in NSC:
- Investment Plan: Keep your financial goals in mind before investing in NSC.
- Risk Profile: NSC is a low -risk scheme that makes it safe.
- Lock-in period: NSC has a 5-year lock-in period, which means that you cannot withdraw money before 5 years.
Enrollment and representation for National Saving Certificate
You can also enroll while investing in NSC. This ensures that your family can easily get money after your death. NSC can also be used as representation, such as security for debt.
Questions often asked for National Savings Certificate
The following are some common questions related to NSC and their answers:
- Is it possible to return premature in NSC?
- Yes, premature return is possible in certain circumstances, such as investor death or court order.
- Does investing in NSC get tax benefits?
- Yes, investing in NSC provides tax benefits under Section 80C of the Income Tax Act.
- Is there any maximum limit to invest in NSC?
- No, there is no maximum limit to invest in NSC.
Conclusion for National Saving Certificate
The National Saving Certificate is a safe and attractive investment option, providing guaranteed returns and tax benefits. This scheme is suitable for investors who are interested in low -risk investment and want income tax benefits. Your financial goals and requirements should be taken into account before investing in NSC.
Conclusion and further plan
Investing in the NSC scheme gives you financial security and stability. This scheme is suitable for those who want to invest for long periods and get tax benefits. NSC’s 5-year lock-in period and guaranteed returns make it a safe option.
Disclaimer:
The National Savings Certificate (NSC) is a real and government -backed scheme, which is available through Indian post offices. The scheme provides safe and guaranteed returns to investors, as well as income tax benefits. It would be appropriate to consult your financial advisor before investing in NSC.
