National Savings Certificates (NSC)

National Savings Certificates (NSC)

 

ü NSC VIII Issue

ü Scheme specially designed for Government employees, Businessmen and other salaried classes who are Income Tax assesses.

ü No maximum limit for investment.

ü No Tax deduction at source.

ü Certificates can be kept as collateral security to get loan from banks.

ü Investment up to INR 1,00,000/- per annum qualifies for IT Rebate under section 80C of Income Tax Act.

ü Trust and HUF cannot invest.

ü Rate of interest 8.50%.

ü Maturity value of a certificate of INR.100/- purchased on or after 1.4.2012 shall be INR. 151.62 after 5 years.

ü NSC IX Issue

ü No maximum limit for investment.

ü INR. 100/- grows to INR 234.35 after 10 years.

ü Minimum INR. 100/- No maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.

ü A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor.

ü Rate of interest 8.80%.

ü Maturity value of a certificate of INR.100/- purchased on or after 1.4.2012 shall be INR. 236.60 after 10 years.

ü Buy National Savings Certificates (NSCs) every month for Five years – Re-invest on maturity and relax - On retirement it will fetch you monthly pension as the NSC matures.

 

ü 5 Years National Savings Certificate (VIII Issue)  8.5% compounded six monthly but payable at maturity. INR. 100/- grows to INR 151.62 after 5 years.

ü 10 Years National Savings Certificate (IX Issue)

ü 8.80% compounded six monthly but payable at maturity. INR 100/- grows to INR 236.60 after 10 years.

o   A single holder type certificate can be purchased by, an adult for himself or on behalf of a minor or by a minor.

o   Deposits qualify for tax rebate under Sec. 80C of IT Act.

o   The interest accruing annually but deemed to be reinvested under Section 80C of IT Act.