All About National Saving Certificates NSC

Who can purchase :

• An adult in his own name or on behalf of a minor,
• A minor,
• A trust,
• Two adults jointly,
• Hindu Undivided Family.

Where available

Available for purchase/issue at all Post Offices in India.

Minimum Purchase Value

The minimum amount of investment under NSC is Rs 100/-

Maturity

Period of maturity of a certificate is six Years.

Nomination / Transferability:

• Nomination facility is available.
• Certificates can be transferred from one post office to any other post office.
• Transfer from one person to another person permissible in certain
  conditions.

Denomination / Deposit limits :

Certificates are available in denominations (face value) of Rs. 100, Rs.
500, Rs. 1000, Rs. 5000 & Rs. 10,000.

There is no maximum limit for purchase of the certificates.

Interest/maturity value :

• Interest is available on this scheme @ 8%, compounded half-yearly
• With effect from 1st March, 2003, Maturity value a certificate of Rs. 100
  denomination is Rs. 160.10.
• Maturity value of a certificate of any other denomination shall be at
  proportionate rate.
• Interest accrued on the certificates every year is liable to income tax but
  deemed to have been reinvested.

Premature encashment :

Premature encashment of the certificate is not permissible except at a
discount in the case of death of the holder(s), forfeiture by a pledgee and
when ordered by a court of law.

Place of Encashment/discharge on maturity :

Can be encashed/discharged at the post office where it is registered or any other post
office.

Income Tax relief :

• Income Tax rebate is available on the amount invested and interest accruing every
  year under Section 88 of Income tax Act, as amended from time to time. [under Sec 80C]
• Income tax relief is also available on the interest earned as per limits fixed vied section
  80L of Income Tax, as amended from time to time.