National Saving Certificate |
|
| Eligibility | any Individual |
| Interest rate | 8.0% (while Fixed deposit 6-7%) |
| How to open | at any post office |
| Investment Limit Per Year | 100 to No limit but 1.5 lakh rebate under 80c every year. |
| Premature closing | in case of death |
| Maturity / Lock-in Period | 5 |
| Extension | buy another NSC |
| Tax Benefits | No tds, section 80c, |
What is NSC & How Its works?
NSC is Just Like 5 years FD. NSC >> National Savings Certificate only available with Post Office. Gives Better than bank FD Returns and some extra Benefits in the form of reinvestment every year. and final year earned interest amount is taxable according to the slab. section 80c applicable for invested amount.
NSC Interest rates Year wise 2019
| Period | Interest Rate |
| Q2 FY 2019-20 | – |
| Q1 FY 2019-20 | – |
| Q1 2018-19 | 7.6% |
| Q2 2018-19 | 7.6% |
| Q3 2018-19 | 8.0% |
| Q4 2018-19 | 8.0% |
Adjusted every 3 months.
National Savings Certificate Tax Benefits
ETE status:
Interest earned is taxable just like FD. But You can reclaim as Invest up to the 4th year under section 8oc.
Final year income added your ITR as income from other sources.
NO TDS: While Fixed deposits deduct the TDS if the Interest in a financial year reaches its threshold 40,000 (AY 2019-20)
NSC Eligibility who can buy National Savings Certificate?
Only Individuals of Resident Indians, Minor, Single or joint,
Trust & HUFs are not eligible to buy NSC Certificate, However, Karta of HUFs can buy on his/her name only.
How to buy national Savings certificate at Post Office?
- download NSC Application form here, or available at the nearest Post office or head post office.
- Fill the Form, Submit KYC,
- Pay the Certificate price in the form of cash* or cheque.
- Collect your NSC Certificate from the post office.
- after 5 years collect the Price with interest earned. don’t forget it add it to taxable income. if your income limit reached current financial year Income Tax Slab.
Documents required
- Recent Photograph
- cash/cheque
- ID Proof & address proof
NSC calculator
| investment | interest rate | term years | return |
| 100000 | 8 | 5 | 1,48,984 |
| 200000 | 8 | 5 | 2,97,969 |
| 300000 | 8 | 5 | 4,46,953 |
| 400000 | 5,95,938 | ||
| 500000 | 7,44,922 | ||
| 1000000 | 8 | 5 | 14,89,845 |
compound annual interest rate 8%* may compound at 3 months
calculated through our compound interest calculator tool you may also try fd calculator.