Tuesday, 10 August 2010

National Saving Certificate (N.S.C)- A Secure Investment Option

National Saving Certificate is an instrument of saving issued by the central government. Any resident Indian citizen can invest in N.S.C. A non-resident Indian or an H.U.F cannot purchase N.S.C. It is a tax saving instrument and the amount invested in NSC can be deducted from the income of the particular year as per section 80C of Income Tax Act., which allows a maximum of Rs.100000/- in all tax saving schemes under Sec 80C of Income Tax Act. The interest accrued every year is deemed as a re investment and can claim exemption under Sec 80C of Income tax act for the first five years of investment. NSC is available from any post office in India and also can be transferred to any post office in India.

The minimum investment in National Saving Certificate is Rs.100/ and No maximum limit and the NSC is available in denominations of Rs.100/-, 500/-, 1000/-, 5000/- & INR. 10,000. If an investor wishes to Deposit Rs.50000/- in NSC, he can take 5 NSCs of Rs.10000/- each. The investor get a compound interest of 8% (at present) compounded six monthly but payable at maturity. An NSC of Rs.100/- grows to Rs.160.10 after 6 years.

The Lock in Period of NSC is Six years and premature withdrawal is not allowed except the death of the investor or holder. NSC can be pledged in a bank for taking loan or can give as a collateral security for loan. NSC can also be transferred to any resident Indian citizen through proper format. Nomination facility is also available for NSC. When it is transferred, the earlier nomination will be cancelled. The holders can encash the maturity value of NSC directly from the post office or through a bank on maturity. Duplicate certificate can be issued for lost, stolen, destroyed, mutilated or defaced certificate. Interest is taxable under Income Tax Law but no TDS will be deducted form the interest and the deposits in NSC is exempt from wealth Tax. It is a secure investment option.


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All About Public Provident Fund Scheme (P.P.F)

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8 comments :

  1. [...] This post was mentioned on Twitter by Rose said: National Saving Certificate (N.S.C) http://goo.gl/fb/MA2RI [...]

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  2. [...] can take loan against all financial instruments such as NSC (National Savings Certificate), KVP (Kissan Vikas Patra), Fixed Deposits etc. For getting loan you [...]

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  3. Sure you can pledge these instrument to bank and can take loan. Please read
    http://www.investmentsandmoney.com/2010/10/23/get-loan-from-your-investments/

    ReplyDelete
  4. How to Invest in NSC Bounds

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  5. Very Simple. Just go to the nearest Post office and with money and Identity proof. They will do the needful

    ReplyDelete
  6. [...] savings schemes are also safe deposits and most of these deposits have a certain time period. National Saving Schemes (NSC), Indira Vikas Patras (IVP), Kissan Vikas Patra (KVP), Post Office Monthly Income Scheme [...]

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  7. [...] Public Provident Fund (PPF), Employee Provident Fund (EPF),  Tax-saving Bank Fixed Deposits, National Savings Certificate (NSC) Senior Citizens Savings Schemes and Infrastructure [...]

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  8. [...] Public Provident Fund (PPF), Employee Provident Fund (EPF),  Tax-saving Bank Fixed Deposits, National Savings Certificate (NSC) Senior Citizens Savings Schemes and Infrastructure [...]

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