Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
National Savings Certificate is a post office savings instrument with fixed interest, 5-year tenure, and Section 80C tax deduction on investment.
NSC is a 5-year post office certificate — you get fixed interest and tax deduction when you buy it.
Interest deemed reinvested and qualifies for 80C each year except maturity year in many cases. Interest fully taxable at maturity. Transferable but no premature encashment except death or court order. Available in denominations from ₹1,000.
Buy ₹1 lakh NSC at 7.7% — grows to about ₹1.45 lakh in 5 years. Annual deemed interest claimed for 80C while interest taxed on accrual basis.
PPF offers longer horizon, tax-free maturity, and higher flexibility. NSC suits 5-year definite goal with 80C need via post office.
Banks accept NSC as security for loans. Transfer to bank endorsed on certificate during loan tenure.
India Post Payments Bank and selected post office services offer digital purchase in participating locations.