If you searching for Who Can Purchase National Savings Certificate and what is National Savings Certificate. Then you are at the right place. Here we will tell you all the information about (NSC). You must have heard the name of India Post, India Post controls the postal chain of the country. But along with controlling the postal chain, India Post also runs many Deposit Saving Schemes for investors like banks. Which we know as Post Office Saving Scheme or Post Office Kisan Vikas Patra.
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Who Can Purchase National Savings Certificate?
Now the question is Who Can Purchase National Savings Certificate? The answer to this question is “Citizens of India can purchase the NSC“. NSC is only for individuals. Hence, Hindu Undivided Families (HUFs) and trusts cannot invest in it. Even Non-Resident Indians (NRI) cannot purchase NSC certificates. National Savings Certificate (NSC) is a tax-saving investment that can be purchased by an Indian resident from any post office. Being an investment backed by the Government of India, its return is assured and the risk is low hence NSC is generally preferred by risk-averse investors.
What Is Post Office National Savings Certificate?
Post office schemes are considered better in every way for small investors. Your money is completely safe by investing in any type of post office scheme.
The name of this scheme of the post office is National Saving Certificate (NSC). This is a Short Term Investment Plan whose maturity is of 5 years. 5 years are calculated from the date on which the money is deposited in this account. At present, it is giving a return of 6.8 percent. Interest is calculated on the basis of completion of one year and is paid on maturity. The interest rates of all Small Saving Schemes are updated every three months.
Who Can Purchase National Savings Certificate | Eligibility Criteria
Let’s know who can purchase National Savings Certificate:-
- All Indian residents can invest in National Savings Certificate
- Minor above the age of 10 years.
- A guardian on behalf of a minor or on behalf of a mentally challenged person.
- Non-Indian Citizens (NRIs) cannot buy new NSCs.
- Under certain sensitive conditions, such as, if a resident Indian has purchased an NSC and becomes a non-Indian citizen before maturity, then such NSC can be retained till maturity.
- Doer of Hindu Undivided Family (HUF) can invest in NSC only in his own name.
Post Office National Savings Certificate | Documents
Do you want to know Who Can Purchase National Savings Certificate? Let’s know, The person who has the following documents can purchase NSC:-
- Correctly filled NSC Application Form
- Current photo
- Identity Proof (ID Proof):- Aadhar Card, PAN Card, etc.
- Address Proof: – Aadhar Card, Voter ID Card, Electricity / Water Bill, etc.
National Savings Certificate | Interest Rate
This post office scheme is currently giving a return of 6.8 percent. The interest in this scheme is calculated annually and full payment is made on maturity. The interest rate of this scheme is as follows:-
- 6.8% Compound Rate which is payable on maturity.
- In 5 years Rs.1000/- increases to 1389.49.
The interest rate for National Savings Certificate from 01-04-2020 is as follows:-
|Time Period||Interest Rate|
|In the first quarter of the financial year 2018-19||7.6%|
|In the second quarter of the financial year 2018-19||7.6%|
|In the third quarter of the financial year 2018-19||8.0%|
|In the fourth quarter of the financial year 2018-19||8.0%|
|In the first quarter of the financial year 2019-20||8.0%|
|In the second quarter of the financial year 2019-20||7.9%|
|In the third quarter of the financial year 2019-20||7.9%|
National Savings Certificate | Features Or Benefits
Earlier it was available in two tenures – 5 years and 10 years but out of this the 10-year NSC has been abolished, so now only National Savings Certificate with a duration of 5 years can be bought. Its main features are as follows:-
- National Savings Certificate with a maturity of 5 years can be purchased from any post office in India.
- Its interest rate changes from time to time as per the orders of the Ministry of Finance.
- The minimum investment amount in National Savings Certificate is Rs 100 but there is no maximum limit.
- Under Section 80C of the Income Tax Act 1961, the benefit of tax deduction is available on the amount of investment up to Rs 5 lakh annually under NSC.
- Under this scheme, interest is deposited annually but full payment is made only on maturity, in which TDS is not deducted.
- The investor investing in this can make any member of his family a nominee. In the event of the death of the investor, it can be operated by his/her nominee.
Also Read: Recurring Deposit In Post Office
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