Every hard-earned rupee has a lot of value. It is very important that whenever you make a small or big investment, you get the full benefit. If you want to make a profit by investing in less time then you can choose a great post office scheme. National Savings Certificate means you can earn Rs 20 lakh in 5 years by investing only Rs 100 in NSC Kim.
National Savings Certificate and its benefits
This is a small savings plan, which is being run from the post office. You can invest in it for just Rs. In which there is no limit to the investment. You can invest as much as you can afford. The NSC is an initiative of the Government of India to encourage small and medium income earners to invest and save on income.
NSC can also be purchased in the name of their own children. Its maturity period is 5 years. This post office plan is completely safe for you if you want to get a higher return by investing without any risk.
Normally as mentioned earlier the maturity period of this scheme is five years but if you wish you can withdraw money even in one year subject to certain conditions. The interest rates of the scheme are announced by the government at the beginning of each quarter of the financial year.
You can start with just Rs 100 investment in this plan. Compound interest is considered in this scheme. As a result, today's investment of Rs 100 will be Rs 144 after charging interest. Under this scheme, interest is paid at 6.8 per cent per annum and a tax deduction of up to Rs 1.5 lakh is also available under 80C of Income Tax.
The scheme will earn interest at the rate of 6.8%
The interest rate on investment in this scheme is currently 6.8% per annum. The interest is calculated annually. But the amount of interest is paid after the end of the investment period. The tenure of this scheme is 5 years. However, the scheme can be extended for another 5 years after maturity.
Where do you get the certificate?
A national savings certificate is a means of long-term investment. This allows investors to return at a fixed interest rate. What is special is that it is published under the Post Office Scheme of the Government of India. You can purchase a National Savings Certificate from your nearest post office.
What is the process?
Buying a National Savings Certificate is a simple process, you can buy it from any post office. Yes, keep in mind that you have to have some necessary documents to buy a National Savings Certificate. You will have to provide your information through the form, in which you have to state your name and the amount of investment. You may need supporting documents to purchase a National Savings Certificate. You can purchase a National Savings Certificate by check or cash. The account will be opened only after successful payment by check.
Benefit of income tax exemption
The National Savings Certificate has the benefit of income tax exemption on the deposit. Investing in NSC is tax deductible under Section 80C of the Income Tax Act. However, this discount is only available on investments up to Rs 1.5 lakh.
The account can be transferred
Issue VIII of NSC may be transferred to another person. However, this facility can be availed only once before its maturity. This can be done only once from one person to another from the date of issue of the certificate to the date of maturity.
Full Read Gujarati This Scheme Click Hare
A minimum investment of Rs
You have to invest a minimum of Rs 100 to open an NSC account. There is no limit for depositing maximum amount. This account can also be opened in the name of a minor and as a joint account in the name of 3 adults.
You will also get the benefit of tax exemption
The best thing is that in the National Savings Certificate you get the option to save tax. You get the benefit of tax exemption under Income Tax Act 80C. Yours by investing in a National Savings Certificate
