c. National Savings Certificate
Can I take a loan against my NSC?
Yes, NSC can be collateralized for a loan, subject to certain conditions: The certificates will have to be transferred to the lender. They can be pledged to the president of India, governor of your state, a PSU or local authority. When the ...
Is it possible to transfer NSC ownership?
Yes, you can transfer the ownership of NSC to another person. For this you will need a written declaration of consent from the postmaster of the post office where you have opened the account. You can transfer the certificates from: Holder to nominee ...
Which is better - NSC or Tax saving FDs?
There are many advantages of investing in NSC over Tax saving FDs. The interest accrued in the NSC will not attract TDS (Tax deducted at source). Bank FDs attract a 10% TDS deduction if the interest earned in a financial year is more than Rs.10,000. ...
What are the rules of premature withdrawal of corpus in NSC?
NSC certificates have a predetermined lock-in period of 5 years. However, premature withdrawal is possible in certain emergency cases like the following Death of the holder Order of the court A Gazetted Officer pledges for the certificates to be ...
Can two or more people own NSC certificates jointly?
Two people can own NSC certificates jointly, but not more. There are three types of joint certificates, -- Single holder Type, Joint A Type & Joint B Type. Single holder certificates, as name suggests, can be issued only to one individual, but ...
Is it possible to transfer NSC ownership?
Yes, one can transfer the ownership of NSC to another person. For this the investor would need a written declaration of consent from the postmaster of the post office where he has opened the account. Certificates can be transferred from: Holder to ...
What is the tax treatment of NSC?
The initial investment in NSC is tax free to the extent of ₹1,50,000 under 80C. Annual interest accrued on NSC is reinvested in the scheme, and hence, is also tax-free. It is only in the last year that any income tax will be payable. This is ...
Can NRIs invest in NSC?
No, investment in NSC is only open for resident Indians.
What is the interest rate on NSC?
The interest rate on 5-year NSC VIII issue is 8% from 1/10/2018 onwards.
Is there more than one type of NSC?
Yes, there are two types of NSC Certificates, based on their tenure and the time they were released by the Post office. NSC Issue VIII These certificates have a 5-year maturity period. Everyone can invest in these, except HUFs and Trusts. They come ...
How is the interest paid on NSC?
The interest on NSC is accrued yearly. But is paid out only at the time of maturity. You can reinvest the interest back into the scheme.
What is National Savings Certificate (NSC)?
NSC is a tax saving bond issued by the government via Postal services. It is characterized by 5 years and 10 years maturity periods and enjoys tax exemption under section 80C.