INSUBCONTINENT EXCLUSIVE:
Deposits in NSCs qualify for deduction under Section 80C of Income Tax Act.National Savings Certificates or NSCs, one among nine small
savings scheme offered by India Post or post office, is operated by Department of Economic Affairs
The government revises interest rates applicable to small savings schemes on a quarterly basis
For quarter ending March 31, post office NSCs fetches an interest rate of 8 per cent per annum, as mentioned on official website of India
This interest is compounded on an annual basis but paid on maturity. ( Post Office Time Deposit (TD) Account: Interest Rate, Maturity
Eligibility: A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or by a minor, according to
India Post, which has a network of more than 1.5 lakh post offices across country.2
Minimum investment required: The minimum amount required for opening NSC account is Rs
100 in multiples of Rs 100
There is no upper limit on NSC investments.3
Maturity Period: An NSC of Rs 100 will offer Rs 146.93 on maturity after five years
National Savings Certificates (NSCs) have a lock-in period of five years, stated India Post.4
Income tax benefit: Deposits in National Savings Certificate qualify for deduction under Section 80C of Income Tax Act
Section 80C of Income Tax Act provides for income tax deductions up to Rs
1.5 lakh in a financial year.5
Transfer of certificates: At time of transfer of certificates from one person to another, old certificates are not discharged
Name of old holder are rounded and name of new holder are written on old certificate and on purchase application under dated signatures of
authorized postmaster along with his designation stamp and date stamp of post office, noted India Post.
