About National Savings Certificate Scheme

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National Savings Certificate (NSC) is a savings scheme offered by the Indian government that allows individuals to invest their money for a fixed period of time and earn a guaranteed rate of return.

NSC has a maturity period of 5 years and the current interest rate is 7% per annum (compounded annually). The minimum investment amount is Rs. 1000 and there is no maximum limit on the investment.

To apply for a National Savings Certificate (NSC), you need the following documents:

  • Identity proof: Any government-issued photo identification document such as Aadhaar Card, Passport, Voter ID card, Driving License, PAN Card, etc.
  • Address proof: Any government-issued document that has your current address such as Aadhaar Card, Passport, Voter ID card, Driving License, Utility bill, Ration card, etc.
  • NSC Application form: You can get the NSC application form from your nearest post office or bank.
  • Passport size photograph: You need to affix a recent passport size photograph on the NSC application form.
  • Cash or Cheque: You need to pay the NSC investment amount in cash or through a cheque.

Note : NSC Interest is taxable under “Income from Other Sources”.

Replies (1)

Thanks for sharing the info on the National Savings Certificate (NSC) scheme! Here's a concise summary and some additional points for clarity:


National Savings Certificate (NSC) — Quick Guide

  • What is it?
    A government-backed savings scheme encouraging fixed-term investments with guaranteed returns.

  • Tenure:
    5 years

  • Interest Rate:
    Currently 7% per annum (compounded annually)

  • Investment Limits:
    Minimum Rs. 1000; no upper limit

  • Where to invest:
    At post offices and some authorized banks

  • Documents Required:

    • Identity proof (Aadhaar, PAN, Passport, Voter ID, Driving License, etc.)

    • Address proof (can be same as above or utility bills, ration card, etc.)

    • Passport size photograph

    • NSC application form (available at post office/bank)

    • Payment via cash or cheque

  • Taxation:

    • Interest earned is taxable under "Income from Other Sources"

    • Interest accrued every year is considered taxable even though it is paid only on maturity

    • You can claim deduction under Section 80C on the amount invested (principal) up to Rs. 1.5 lakh per annum


Additional points:

  • Tax Deducted at Source (TDS): No TDS is deducted on NSC interest; you must declare the interest income in your ITR.

  • Loan Against NSC:
    You can avail loan against NSC certificates from banks and post offices.

  • Premature Withdrawal:
    NSC generally does not allow premature withdrawal before 5 years, except in specific cases such as the death of the holder.


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