Question: What Is The Maturity Period Of NSC?

What happens to NSC after maturity?

Transferability: The transfer of NSC VIII and NSC IX from one individual to another is permitted once from the date of issue of the scheme till its maturity.

Maturity: If the NSC maturity proceeds are not withdrawn by an account holder, the scheme becomes available for post office savings scheme interest for 2 years..

How is NSC maturity amount calculated?

The NSC Interest Rate calculator calculates the maturity amount. It also calculates the investment made and interest earned. In this case, the maturity value is INR 6,98,514.45. The investment is INR 5,00,000.

Is TDS deducted on maturity of NSC?

According to the NSC (Viii Issue) Rules, 1989, interest earned on the NSC certificates is not subject to TDS. … The TDS is deducted at the rate of 10 per cent in case interest accrued or paid out exceeds Rs 10,000 in a financial year.

Is Fd better than NSC?

*TDS is deducted before being re-invested again in case of bank FD. NSC, in comparison with SBI and IDFC Bank FDs, is offering higher maturity value. … NSC certificates can be used as collateral to obtain loan. However, a bank tax-saving FD cannot be used for the same as per Bank Term Deposit Scheme Rules.

What is the current rate of interest in NSC?

6.8% per annumNational Savings Certificate (NSC) The NSC rate of interest is 6.8% per annum compounded half-yearly but payable at maturity. That means, your investment of Rs.

Which is good PPF or NSC?

If you see the return, then PPF is better. If you seek short-term maturity period then NSC is better whereas if you want the money at a later stage of your life then PPF is better. According to tax exemption, PPF is way better as interest income in taxable under NSC.

What is the maturity period of national savings certificate?

5-10 yearsThe investor is entitled to a yearly interest. These certificates usually have a maturity of 5-10 years from the date of allotment. It must be noted that no interest shall be paid to the investor till the date of maturity. The interest accrued till the maturity date shall be reinvested.

Is maturity of NSC taxable?

Amount invested in National Savings Certificates (NSC) is eligible for deduction under Section 80C up to the cumulative limit of `1.5 lakh. Interest income earned on NSC is not exempt from tax and is thus, required to be disclosed in ITR. … The interest income received on maturity is taxable as income from other sources.

How can I get money after NSC maturity?

The process is explained below.Visit the post office along with original NSC, Identity Slip (issued during buying), identity proof and a handwritten application (I have not found any particular application).Submit this to the branch, where you want to encash or withdraw the NSC.More items…•