National Savings Certificate Scheme offers the facility of investment through both electronic mode and passbook mode. Apart from this, investment in it provides the benefit of tax deduction under section 80C of Income Tax.
Tax Saving Scheme: Often people want to get huge returns by investing their money, but due to the fear of unsafe investment, they do not invest their money anywhere. But to increase the savings of low-income people, many savings schemes are being run by the government. These also provide predetermined interest and also guarantee the safety of investment. One such small savings scheme is the National Savings Certificate Scheme. In this, along with good returns on investment, investors also get tax benefits, due to which it is becoming very popular among low-income investors. Let us know about it in detail.
There is exemption in income tax
The National Savings Certificate Scheme provides the facility of investment through both electronic mode and passbook mode. Apart from this, investment in it provides the benefit of tax deduction under Section 80C of Income Tax. In simple words, by investing in this scheme, you are not only earning good returns, but you also get income tax exemption up to Rs 1.5 lakh. Due to which it remains very attractive among the people. Apart from this, unlike fixed deposit, TDS is not applicable on the interest amount of National Savings Certificate.
Who is eligible to invest in NSC?
Any Indian can open his account in NCC. It also provides the facility of opening a joint account between two people. Apart from this, minors can also open their account. You get both online and offline facility for investing in this scheme. You can invest online through Internet Banking of the Post Department, while for offline you will have to go to the nearest post office.
Investment has to be made for this much time
Let us tell you that investment is made in these schemes for five years and there is no option to close the NSC account before this period. However, it can be closed if the depositor dies, if it is seized by the promise of a gazetted officer, or on the order of the court.
What is the interest rate
In this scheme, one can start investing with a minimum of Rs 1000, while there is no limit on maximum investment in multiples of Rs 100. Currently, the government is offering an annual interest rate of 7.7 percent on this, which is adjusted every three months.
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