National Savings Certificate India
Here are the details of National Savings Certificate popularly known as NSC offers tax savings benefits for Indian individuals. NSCs or National Savings Certificates are available in each and every post office throughout the India.
* One can invest a minimum of Rs 500.
* There is no upper limit of investment.
* Rate of interest 8% compounded half yearly.
* If you invest Rs 1000 it will be Rs 1601 after six years.
* Companies, Trusts, Societies and any other Institutions are not eligible to purchase.
* Non-resident Indian/HUF can not purchase.
* Pre-mature withdrawal facility is not available.
* Annual interest earned is deemed to be reinvested and qualifies for tax rebate for first 5 years under section 80 C of Income Tax Act.
* Maturity proceeds not drawn are eligible to Post Office Savings account interest for a maximum period of two years.
* Facility of reinvestment on maturity.
* Certificate can be pledged as security against a loan to banks and Govt Institutions.
* Facility of encashment of certificates through banks.
* Certificates are encashable at any Post office in India before maturity by way of transfer to desired post office after a certain period.
* Certificates are transferable from one Post office to any Post office within Indian territory.
* Certificates are transferable from one person to another person before maturity.
* Duplicate Certificate can be issued for lost, stolen, destroyed, mutilated or defaced certificate.
* Nomination facility available.
* Facility of purchase/payment to the holder of Power of attorney.
* Tax Saving instrument - Rebate admissible under section 80 C of Income Tax Act.
* Interest income is taxable but no TDS.
* Deposits are exempt from Wealth tax.
If you want to know more contact your nearest post-office.