All You Need to  Know About Tax  Benefits of NSC

What is NSC?

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 In normal situations, it cannot be withdrawn before the maturity of 5 years.