The National Saving Certificate (NSC) is a federal initiative by the National Saving Institute, a department of the Ministry of Finance that is almost 130 years old.
Taxation on NSC
Interest is taxable according to the tax slab.No TDS Tax shield worth ₹ 1.5 lakhs.
What is a Tax Shield?
A tax shield allows an individual or corporation to reduce taxable income. NSC offers deductions up to ₹ 1.5 lac under 80C of the I.T. Act.
Benefits of NSC
Sovereign-backed financial instrument.Fixed & stable returns.It can be used as a collateral security.The minimum investment amount is ₹ 1,000.
Lock-in & Withdrawals
The NSC certificate is locked in for 5 years. In normal situations, it cannot be withdrawn before the maturity of 5 years.