National Saving Certificate is a five-year one time small saving scheme. In this, the benefit of tax deduction is available on the investment under section 80C, while the interest is taxable. 1 lakh will get about 39 thousand interest in five years.
Post Office NSC details: Post office schemes for small investors are considered better in every respect. Your money is completely safe by investing in any post office scheme. This facility is available in your village and locality, as well as in many schemes, better returns are available from the bank. This is a one time investment scheme. Let us know about it in detail.
The name of this post office scheme is National Saving Certificate (NSC). This is a short term investment plan whose maturity is of 5 years. The calculation of 5 years is done from the date the money is deposited in this account. It is currently offering an excellent return of 6.8 per cent. Interest is calculated on an annual basis and paid on maturity. The interest rates of all small savings schemes are updated every three months. For the current quarter The interest rate remains the same.
Must invest at least Rs 1000
Talking about the investment amount, at least 1000 rupees have to be invested. There is no maximum investment limit. Investment of more than 1000 rupees will be in multiples of 100 like 1100, 1500 ….. An individual can open any number of NSC accounts in his name. Loan facility is also available against this account. Apart from this, it can also be used as a pledge. There is also a facility to transfer it when needed. Pre-mature closure is not possible under normal circumstances. Premature closure is possible if the account holder dies or the account holder defaults in the event of the account being mortgaged.
Benefit of deduction on investment, interest taxable
Talking about tax benefits, investing in it gives the benefit of deduction under section 80C. The limit for this section is Rs 1.5 lakh. Interest income is taxable. In such a situation, it is necessary for the account holder to mention his interest income in the return every year. In the maturity year also, the interest income of the previous year i.e. the fourth year is also taxable. Under this scheme, the interest income earned every year gets re-invested. In such a situation, the interest of the previous year has to be included in the income return. Lump sum benefit of interest income is available on maturity of 5 years. TDS is not deducted in any post office scheme
38949 interest on investment of 1 lakh
According to the NSC calculator, after 5 years investing 1 lakh will get Rs 138949. 277899 rupees will be available on 2 lakh investment. 694746 rupees are available on investing 5 lakhs. The facility of this scheme is available in every post office. There is also the facility of nomination and it can also be done person-to-person transfer. There are some special terms and conditions regarding transfer of this account.
