To get income tax exemption for the year 2021-22, you have to invest in certain schemes by March 31. In such a situation, if you want to save tax and get a higher return on your investment, then you can invest in the National Savings Certificate (NSC) scheme of the Post Office. At present, 6.8% annual interest is being given under this scheme. We are telling you about this scheme.
Interest available in this is 6.8% per annum
Currently, 6.8% interest is being given in this scheme. You will have to invest a minimum of 1000 rupees in this post office scheme. You can invest any amount in NSC. There is no maximum investment limit in this. The lock in period of NSC is 5 years.
Account can also be opened in the name of children
In this scheme, an account can also be opened in the name of the child. If the child is less than 10 years of age, the account can be opened on behalf of the parents in his/her name. At the age of 10, the child can operate his own account, while on attaining the age of adult, he gets full responsibility of the account.
Apart from this, an individual of 18 years of age can invest in NSC on his own or on behalf of a minor. This account can also be opened joint account in the name of 3 adults.
In this, the benefit of tax exemption is available
You can claim tax exemption on any money you invest in the National Savings Certificate under Section 80C of the Income Tax Act. You can take advantage of tax exemption on this by investing a maximum of Rs 1.5 lakh in NSC in a financial year.
NSC account can be transferred in the name of another person
NSC can be transferred from one person to another. For this, the name of the old NSC holder is surrounded and the name of the new NSC holder is written on the NSC.
It has a lock-in period of 5 years
If you want to withdraw your investment then you have to wait for 5 years. It has a lock-in period of 5 years. That is, you will not be able to withdraw your money before 5 years.
In what time does money double?
It is currently getting interest at the rate of 6.8% per annum. In such a situation, according to the rule of 72, if you invest money in this scheme, then it will take 10 years and 6 months for the money to double.
Keep these things in mind before investing in it
- If you want to withdraw the interest earned on it intermittently during the maturity period, then you will not be able to do so by investing in this scheme.
- There is a lock in period of 5 years in this i.e. you will not be able to withdraw money for 60 months. That is why this scheme is not suitable for those who want to invest for 1-2 years.
