It is a fixed income investment scheme initiated by the Government to encourage small and medium income investors to deposit money. The scheme comes with compulsory investment period of 5 years and 10 years. While the maximum investment limit is not specified, investments upto Rs.1.5 lakh is eligible for a tax break under Section 80C of the Income Tax Act.
This scheme offers guaranteed returns through interest income, allowing you to grow your money with compounded interest.
The scheme comes with a sovereign guarantee and qualifies for tax saving. Investments up to Rs. 1.5 lakhs are eligible for tax deductions under Section 80C.
The current interest rate of NSC is 6.8% per annum, offering a safe investment avenue with steady interest income throughout the tenure.
Any Indian citizen can purchase this scheme from the post office by submitting KYC documents. NSC can be bought in single name, jointly, or by adults on behalf of a minor.
The interest on the deposit is automatically reinvested, allowing you to benefit from the power of compounding and growing your investment over time.
Investing in NSC is a safer way to generate returns especially for retirees. This low-risk investment also attracts tax benefits that giving you slightly better returns. Tax benefits are available under Section 88 on the invested amount while exemptions can be claimed under Section 80L on the accrued interest. Also, investments up to to Rs. 1.5 Lakh qualifies under tax deduction under Section 80C.
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