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NATIONAL SAVINGS CERTIFICATE (NSC)

Written By Franklin V on Wednesday, May 4, 2011 | 10:45 AM

WHO CAN PURCHASE NSC:

  • An adult in his own name or on behalf of a minor,
  • A minor,
  • A trust,
  • Two adults jointly,
  • Hindu Undivided Family.

WHERE AVAILABLE

Available for purchase/issue at all Post Offices in India.

MINIMUM PURCHASE VALUE

The minimum amount of investment under NSC is Rs 100/-

MATURITY OF NATIONAL SAVINGS CERTIFICATE

Period of maturity of a certificate is six Years.

NOMINATION / TRANSFERABILITY:

  • Nomination facility is available.
  • Certificates can be transferred from one post office to any other post office.
  • Transfer from one person to another person permissible in certain
    conditions
    .

DENOMINATION / DEPOSIT LIMITS :


  • Certificates are available in denominations (face value) of Rs. 100, Rs.
    500, Rs. 1000, Rs. 5000 & Rs. 10,000.

  • There is no maximum limit for purchase of the certificates.

    INTEREST/MATURITY VALUE :

    • Interest is available on this scheme @ 8% compounded half-yearly
    • With effect from 1st March, 2003, Maturity value a certificate of Rs. 100
      denomination is Rs. 160.10.
    • Maturity value of a certificate of any other denomination shall be at
      proportionate rate.
    • Interest accrued on the certificates every year is liable to income tax but
      deemed to have been reinvested.

    PREMATURE ENCASHMENT OF NSC:

    Premature encashment of the certificate is not permissible except at a
    discount in the case of death of the holder(s), forfeiture by a pledgee and
    when ordered by a court of law.

    PLACE OF ENCASHMENT/DISCHARGE ON MATURITY :

    Can be encashed/discharged at the post office where it is registered or any other post
    office.

    INCOME TAX RELIEF :

    • Income Tax rebate is available on the amount invested and interest accruing every
      year under Section 88 of Income tax Act, as amended from time to time. [under Sec 80C]
    • Income tax relief is also available on the interest earned as per limits fixed vied section
      80L of Income Tax, as amended from time to time.
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