The Right Way to Invest and Save Tax in 2023- National Savings Certificate
In today’s world, everyone is seeking the best ways to invest their funds for better returns and save tax in India. Out of all the investment schemes available in India, the National Savings Certificate (NSC) is known to be one of the best fixed-income investment schemes, it’s also known as a savings bond scheme. This scheme encourages small to mid-income investors to invest while saving on income tax under Section 80C. This program can activate at any Post Office in India. Since the NSC plan is backed by the Government of India, you’re sure to receive good returns. Its lock-in period is five years, and the current rate of interest for the year 2023 is set at 7%. In fact, by investing in NSC, the investor gets to qualify for Section 80C tax deduction of up to Rs. 1.5 lakhs and the interest earned can be calculated using Fintra’s NSC interest rate calculator. NSC, is a low-risk investment vehicle, with the minimum required deposit of Rs. 100. There is no maximum investment limit, and no TDS for NSC investments.
What is National Savings Certificate (NSC) Calculator?
National Saving Certificate (NSC) interest rates are compounded once a year, and the payable to the investor is after five years. Interest earned every year is reinvested. In NSC Interest Calculator 2023, you just have to enter the amount of your investment, because the term is already fixed at 5 years along with the interest rates. The calculator then calculates the total earnings on the investment at maturity. Fintra’s NSC Interest Calculator is a fast-track source enabling the investor to know how much they will receive on maturity and instantly get a glimpse of whether the plan fits their financial goals without wasting further time.
How to Buy a National Saving Certificate (NSC)?
An NSC scheme can be availed by visiting the nearest Post Office. As an investor, present your original ID and Address proofs. Following are the steps that will assist in investing in NSC:
- Obtain the application form and fill it up with all the required details
- For the investor verification, provide original copies of ID proof and Address proof
- Upon verifying the documents, give the investment amount via cash, demand draft, or cheque in favour of the postmaster
- Lastly, the investor has to select a nominee and get a witness’s signature
Do note only individual Indian residents can invest in NSC. Non-Resident Indians (NRI), Hindu United Families (HUF), and trusts cannot invest in this savings scheme.
What are the Tax Benefits of NSC Investment?
Investment in NSC is qualified for tax exemption under Section 80C of the Income Tax Act. Interest gained during the tenure gets added to the initial investment, which is also qualified for tax exemption. There is no Tax Deduction at Source (TDS) for NSC investment payouts, but on the maturity amount, you will be required to pay the tax as per their income tax slab rates.