National Saving Certificates
National Saving Certificate Scheme run by Government of India, vide Finance Minister G.S.R. 496 (E) commencement date 1st May, 1989 and amended from time and again. National Savings Certificates are issued by Postal Department of GOI, and can be purchased from all post office counters in entire country. NSC is a long term secure savings alternative for the saver. The NSC is a combination of increase in money with relaxation in tax liability as per relevant provisions of the Income Tax Act, 1961. The period of NSC is six years. The National Saving Certificate scheme has the support of the Central Government so there is 0% risk coupled with savings
- National Saving Certificates are issued in various denominations of Rs 100 to 10,000 for a maximum duration of six years.
- Least investment is Rs.100. No upper limit.
- Individuals for himself or for minors and trust singly or jointly can buy National Saving Certificates by applying to the respective Post Office via representative or mediator.
- Payments are acceptable in DD, cash or cheque or debiting the savings account of Post Office.
- National Saving Certificates are simply transferable in the name of one person to the other via post office. Nominal fee has to pay for such registration. NSC also is transferable from one post to other.
- National Saving Certificates holder can obtain a loan against the National Saving Certificate by pledging it with the prior authorization of the respective post master.
- Premature encashment is possible under Rule 16 sub-rule (1) after the completion of 3 years from the commencement of certificate.
- Under section 88 Tax concession are accessible on invested amount in National Saving Certificates, and release can be asked under Income Tax Act, section 80L for accrual of interest on the National Saving Certificates.
- In case of lost, stolen or destroyed certificate, duplicate is issued by the concerned post-office on payment of fee.
National Saving Certificates is having good interest compounded in six month at 8%. A Rs 1000 National Saving Certificates will grow to 1601Rs. on conclusion of 6 years.