What Are Tax Benefits Of National Savings Certificates?

The national saving certificate is one of the popular Tax Saving fixed Income Saving schemes in India for the Residents of India. Here we are going to let you know all of the Tax benefits anyone can get by applying for the NSC.

National Savings Certificate Tax Benefits

As I tell you that NSC comes with the TAX benefits so you can save tax and invest the money for your future at the same time. Below are the tax benefits of NSC.

  • Your invested money can be claimed for the Tax benefit under the section 80c of the Income Tax Act
  • NSC gives you the option to claim tax benefit up to 1.5 lakhs under section 80c of the Income Tax Act
  • Interest earned on the invested amount can be claimed for the Tax Rebate for the first four years
  • On maturity, investors have to give tax only on the interest he/she earned during the 5 years of time; the originally invested amount will be tax-free.

How To Calculate NSC Tax

To calculate the tax on your NSC certificate, you must know the total amount you will get on the maturity.

Tax on maturity will be according to your TAX slabs.

So first, you have to find your maturity amount. To do this, use our NSC Calculator, just fill the amount you want to invest, pick 6.8 for interest, and 5 years for maturity.

Your tax on maturity: Maturity Amount – Original Invested Amount.

Key Benefits Of Investing In NSC

  • Guaranteed returns
  • Your original investment is safe as it backed by the Government
  • Fixed interest rate
  • Can invest as low as 100 INR, and there is no maximum limit
  • Can get a loan against the NSC by using the certificate as the collateral
  • The certificate can be transferred from one person to other, or from Post Office to other