In this article I will be writing about the National Savings Certificate(NSC). It is one of the oldest and traditional investment schemes available for the tax savings. It is more safe compare to any other investments. This article explains some of the key facts about the National Savings Certificate(NSC). If you have any doubts, please post it in the comments section. Subscribe to free newsletter.
National Savings Certificate(NSC)
- Rate of interest 8% compounded half yearly.
- 6 years of lock-in period.
- Interest income is taxable.
- Minimum investment Rs. 500/- No maximum limit.
- No pre-mature encashment.
- Certificate can be pledged as security against a loan to banks/ Govt. Institutions.
- Deposits are exempt from Wealth tax.
- Duplicate Certificate can be issued for lost, stolen, destroyed, mutilated or defaced certificate.
- Certificates are transferable from one Post office to any Post office.
- Nomination facility available.
Summary
I hope this article would have helped you to understand the National Savings Certificate(NSC). If you have any doubts, please post it in the comments section. Subscribe to free newsletter.
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March 7, 2010 at 12:06 am
let me know the maturity value of rs.100000/- & 60000/-
May 18, 2010 at 4:09 am
Hi,
What is the process for getting the NSC certificates transferred from one post office to other, because i bought the NSC certificates in bangalore and now am in Hyderabad.Like to get the certificates transferred to Hyderabad. Appreciate your help.
Thanks
Raj
October 27, 2010 at 3:32 am
what is the tax exemption for nsc of rs.100000 .
July 4, 2012 at 12:24 am
Under Sec 80C we can claim deduction upto (i.e maximum) of Rs.100000, if we had invested that amt in purchase of NSC.
July 4, 2012 at 8:27 am
Hello ANUSHA,
NSC also comes under the Section 80C.
Thanks,
Krishna
November 11, 2010 at 11:31 pm
If I pay rupees 5000 per month for six years in NSC, how much amount will I receive on maturity after the deduction of tax on the interest earned.
February 8, 2011 at 10:43 am
if my nsc certificate goes to someone elses hand without my knowledge, can they cash it after 6 years?
June 4, 2011 at 9:54 pm
Please let me know if the lock period is fixed i.e., 6yrs.
August 14, 2011 at 4:31 am
Hi this is Rajendran and I have two NSC’s each of value Rs. 10000. But right now i need money so I want to sell those certificates. These certificates will mature on Jan 2016. I will be very happy if I get at least the principal amount. I live in Bangalore and I got these NSC’s from Bangalore itself. If anybody is interested pls contact me. My number is +918861095038. Thanks….
October 23, 2011 at 11:00 pm
i have tha nsc bonds i am looking loan how tke a loan plz sug
October 23, 2011 at 11:04 pm
hello i have tha nsc bonds 320000 i am intrested a loan how to takew aloan plz call me 9966671144 (hyd ap)
December 12, 2011 at 5:36 am
nsc bonds on the name of children is eligible for ded. for the father income.?
April 17, 2012 at 4:59 am
i lost my nsc and also i dont know my nsc number. plz help me how to find nsc number
July 4, 2012 at 12:19 am
If NSC are sold after six years, how should we treat them? is any exemption available for that?
July 4, 2012 at 2:06 am
Hello ANUSHA,
Exemption is available only at the time of investment. At the time of maturity, interest income is taxable.
Thanks,
Krishna
December 12, 2012 at 1:47 pm
hi sir i want to nsc how to apply nsc thanxxxxxxxxxxxxxx