What is the Full Form of NSC?

NSC stands for National Savings Certificate. It is a fixed-income scheme for investment backed by the Government of India. They are issued by the Post Office Department of India and can be purchased from any post office branch. In this blog, we will delve into the full form of NSC and explore the world of the certificate.

They have a maturity period of 5 years and offer a fixed interest rate that is compounded annually. The current interest rate on them is 7.7% per annum. NSCs are a popular investment option for small and medium-income investors, as they offer a low-risk and guaranteed return. They are also eligible for tax deduction under Section 80C of the Income Tax Act of 1961.

Also Read – What is the Full Form of DSC?

Benefits of Investment

Some of the benefits of investing are – 

• Low risk: They are a government-backed investment scheme, which means that they are very safe.
• Guaranteed return: NSCs offer a fixed interest rate that is compounded annually, which means that you are guaranteed a certain return on your investment.
• Tax benefits: They are eligible for tax deduction under Section 80C of the Income Tax Act, 1961. This means that you can reduce your taxable income by up to Rs. 1.5 lakh by investing in them.

Eligibility Criteria

The eligibility criteria for investing in NSC’s are –

• Any Indian citizen can invest in them.
• They can be purchased in the name of an individual, a minor, or two adults jointly.
• There is no minimum investment amount. However, the maximum investment amount that is eligible for tax deduction under Section 80C is Rs. 1.5 lakh.

Also Read – What is the Full Form of EC?

Maturity of NSC

NSCs mature after 5 years. On maturity, you will receive the principal amount invested plus the interest earned. You can also withdraw the money prematurely after 4 years, but you will have to pay a penalty. They are a good investment option for risk-averse investors who are looking for a guaranteed return and tax benefits.

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