What is National Saving Certificate offered by Indian Post?

The Indian Post Office is a government-owned organization that provides postal and financial services to individuals and small businesses in India. It operates through a network of more than 1.5 lakh post offices across the country and is the largest postal network in the world.

The Indian Post Office offers a range of services, including mail delivery, money order services, savings accounts, recurring deposits, time deposits, postal life insurance, and more. It also operates a postal savings bank that offers a range of banking services to individuals and small businesses.

Indian Post Office also offers a range of other saving schemes to encourage savings and provide a source of income for individuals in India. Some of the saving schemes offered by the Indian Post Office include:

What is NSC or National Saving Certificate?

The National Savings Certificate (NSC) is a small savings scheme offered by the Indian Post Office that is designed to encourage savings and provide a source of income for individuals in India. It is a fixed-income investment instrument that offers a fixed rate of interest and is backed by the Government of India. The NSC is available in denominations and has a minimum investment amount of Rs. 1000. in multiples of Rs. 100 and no upper limit for invesstment amount.

The NSC is a safe and secure investment option, as it is backed by the government and offers a fixed rate of return. It is a popular choice among investors who are looking for a low-risk investment option with stable returns. The NSC is especially suitable for those who are risk-averse and do not want to take any chances with their hard-earned money and there is no upper limit on the amount that can be invested. The NSC is a safe and secure investment option that provides a fixed rate of return, and it is also eligible for tax deductions under Section 80C of the Income Tax Act.

Who can buy NSC?

Any resident Indian individual can apply for the National Savings Certificate (NSC) offered by the Indian Postal Service. The NSC is a small savings scheme that is primarily intended for individual investors in India.

    1. An Indian Adult

    2. In case oi Joint Account upto 3 adults can apply for NSC

    3. A guardian can apply on behalf of the minor or unsound mind

    4. A minor whose age is more than 10 years.

How to Apply for National Saving Certificate online?

NSC can be purchased online as well. You need to have net banking account in Post office for your Saving Bank Account.

• Login in to the net banking account and apply for NSC
• Upload the necessary documents like Adhar card,Pan Card etc
• Pay the amount to be deposited for NSC
• Click Submit Button.
• Get the NSC cerificate in E-mode or Download it from the internet in the PDF Format

How to Apply for National Saving Certificate offline?

• You can visit the nearest post office and follow the steps below:
• Collect the NSC application form from the post office or download it from the Indian Postal Service's website.
• Fill out the application form with your personal and financial details.
• Submit the completed application form along with the required documents, such as proof of identity and proof of address, Adhar card ,Passport Size photo.
• Make the payment using cash or a demand draft or cheque.
• Post office personal will give you the date on which you receive NSC certificate.

What is the Deposit Amount Required for NSC?

The NSC can be purchased by depositing minimum amount of Rs. 1000 in multiples of 100.

There is no upper limit.

Any Number of accounts can be opened.

What is the current national saving certificate interest rate?

The current interest rate is 6.8%.The amount Rs. 1000 grows to Rs, 1389.49 after 5 years.

The Interest keeps on changing as per the policies of Government from time to time.

One should visit the saving scheme webpage of Indian Post here.

What is Maturity Period of NSC?

The Maturity Period of NSC is 5 years.

What are benefits of buying NSC?

The National Savings Certificate (NSC) offered by the Indian Postal Service is a small savings scheme that provides several benefits to investors, including:

• Fixed rate of return: The NSC provides a fixed rate of return, which means that the investor knows exactly how much they will earn on their investment.
• Tax benefits: The NSC is eligible for tax deductions under Section 80C of the Income Tax Act, which means that the investor can claim a tax deduction on the amount invested in the NSC.
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• Safety and security: The NSC is a safe and secure investment option as it is backed by the Government of India.
• Easy to buy and hold: The NSC is easy to buy and hold as it can be purchased from any post office in India, and it does not require any maintenance or paperwork.
• Can be used as collateral: The NSC can be used as collateral for loans, which makes it an attractive investment option for individuals who need to borrow money.
• Can be transferred or pledged: The NSC can be transferred from one person to another or pledged as security for a loan.
• Can be purchased by a minor: The NSC can also be purchased by a minor, provided that the minor's guardian or parent acts as the holder of the certificate.

Overall, the National Savings Certificate is a reliable and safe investment option that offers a fixed rate of return and is backed by the Government of India. It is a convenient, affordable, and flexible investment option that is suitable for individuals looking to save and grow their money over the long term.

FAQs:

Is 15g required for NSC in India post deposit amount?

-No, a person is not required to submit a Form 15G to claim the interest earned on a National Savings Certificate (NSC) held in India. Form 15G is a self-declaration form that individuals can submit to their bank or financial institution to indicate that their total taxable income for the year is below the exemption limit and that they are not required to pay tax on the interest earned on their fixed deposits or other investments.

Interest earned on an NSC is fully taxable in the hands of the holder and is subject to tax deduction at source (TDS) if it exceeds a certain threshold. The TDS rate on NSC interest is 10% for individuals and Hindu Undivided Families (HUFs), and 30% for other entities. If the holder's total taxable income for the year is below the exemption limit, they can claim a refund of the TDS deducted on the NSC interest by filing their income tax return. However, the holder is not required to submit Form 15G to claim this refund.

What is policy number in NSC saving in India?

A policy number is a unique identification number assigned to a National Savings Certificate (NSC) when it is issued by the Indian government. The policy number is printed on the face of the certificate and is used to track and manage the certificate.

To find the policy number of an NSC, you can refer to the physical certificate or the passbook if you have one. The policy number is typically printed on the front of the certificate, along with other details such as the holder's name, the certificate value, and the issue date. If you have a passbook for the NSC, the policy number will be listed in the passbook along with other details of the certificate.

If you have lost your NSC certificate or passbook and need to locate the policy number, you can contact the issuing post office or bank branch where you purchased the certificate. They may be able to provide you with the policy number based on your personal and contact details.

When on maturity person owning NSC is outside India can the NSA be renewed?

It is not currently possible to renew a matured National Savings Certificate (NSC) online if the holder is outside India. The process for renewing an NSC requires the original certificate to be presented in person at a designated post office or authorized bank branch in India. The holder must also complete a renewal form and provide their personal and contact details, as well as the desired renewal period.

If the holder of the NSC is a non-resident Indian (NRI) and is unable to visit India to renew the certificate in person, they may be able to appoint a representative in India to handle the renewal process on their behalf. The NRI holder can provide a power of attorney to the representative, authorizing them to act on their behalf in relation to the NSC. The representative can then visit the post office or bank branch in India to submit the renewal form and the original certificate on behalf of the NRI holder.

It is worth noting that the Indian government is continuously working on digitalizing its financial services and there may be options for renewing NSCs online in the future. You can check with the designated post office or authorized bank branch where you purchased the NSC to see if there are any updates on this.