Download NSC Interest Calculator in Excel for deduction under section 80C of Income Tax Act, 1961. Interest earned on NSC purchased of last 5 years is taxable in hand of assesses and it also deductible under section 80C up to limit of section ( currently 80 max. limit is 150000).
What is the National Saving Certificate (NSC)?
National Savings Certificate NSC scheme is a fixed income scheme. It is one of the popular savings instruments in India. One can activate this scheme at any Post Office. NSC scheme is the Government of India initiative. Hence it guarantees returns. This savings bond encourages small and mid-income investors to save. Additionally, they can also get a tax benefit. NSC investments up to Rs 1.5 lakhs is exempt from tax under Section 80C of the Income Tax Act. They come with a lock-in period of 5 years. NSC certificates earn fixed interests. The current rate of interest is 6.8%. Like other fixed-income products PPF and Post Office FDs, NSC is also a secure and low-risk instrument. The minimum deposit is Rs 100. There is no maximum limit for investment in NSC. There is no TDS for NSC investments.