National Saving Certificate (NSC) - NSC Certificate India

National saving certificate is known as (NSC). NSC is a variation of small saving scheme of India. You can buy the NSC certificate. People under the age limit of eighteen years can buy the NSC certificate. It is issued by the Government of India. National Savings Certificates (NSC) is an assured return scheme, prepared with powerful tax rebates under Section 88 of the Income Tax Act, 1961. Interest is payable at 8 percent, compounded half-yearly for a duration of 6 years.

National savings certificates are issued by department of post, government of India. NSC certificates are available at all post office counters in the country. It is a long term saving investment for all persons who want to invest. They not only save tax but also make an investment which gives you good and safe returns.

How to invest?
National savings certificates are available at all post offices. You can get the applications either personally or through an agent. Following types of NSC are issued:

• Single holder type certificate: This can be issued to: An adult for himself or on behalf of a minor OR A Trust

• Joint 'A' Type Certificate: This type of certificate is issue for two adults payable to both holders jointly or to the survivor

• Joint 'B' Type Certificate: This type of certificate issued jointly to two adults payable to either of the holders or to the survivor

Terms and Conditions of Buying National Savings Certificate (NSC): as per rule only following customers are allow to buy National Savings Certificate (NSC):

1. Anyone above the age of 18 can buy a National Savings Certificate for himself or for a minor
2. The minors are also eligible to buy a National Savings Certificate
3. Members of a Hindu Undivided Family
4. Two people over the age of eighteen can together buy a National Savings Certificate
5. Any trust can buy a National Savings Certificate

Features of (NSC):

• NSCs are issued in denominations of 100, 500, 1,000, 5,000 and 10,000 rupees for a maturity period of 6 years. There is no prescribed upper limit on investment.
• One person can be nominated for certificates of denomination of 100 rupees and more than one person can be selected for higher denominations.
• The certificates are easily transferable from one person to another through the post office. There is a nominal fee for registering the transfer. They can also be transferred from one post office to another.

Tax benefits are available on amounts invested in NSC under section 88, and exemption can be claimed under section 80L for interest accrued on the NSC. Interest accrued for any year can be treated as fresh investment in NSC for that year and tax benefits can be claimed under section 88.

Advantages of (NSC): If you want to get tax benefits then tax benefits is available on amount invested in under section 88, and exemption can be claimed under section 80L for interest accrued on the NSC. You do not face any risk because these certificates are issued by government of India.

How much interest you will get? :

NSC have a high rate of interest at 8% compounded half yearly. Post maturity interest will be paid for a maximum period of 24 months at the rate suitable to individual savings account. A 1000 rupees denomination certificate will increase to 1601 rupees on completion of 6 years.

Interest rates for the NSC Certificate of 1000 rupees:

1 year-81.60 rupees, 2 years-88.30 rupees, 3years-95.50 rupees, 4years-103.30 rupees, 5years-111.70 rupees, 6years-120.80 rupees.