NSC Full Form
Government Full Form

NSC Full Form: What is the Full Form of NSC

Full Form of NSC: Here in this post we are going to discuss about NSC, NSC Full Form, Who should invest in NSC, Benefits of NSC, Tax Benefits of NSC and many more.

NSC Full Form

NATIONAL SAVING CERTIFICATE

NSDL full form is National Saving Certificate. National Saving Certificate (NSC) is a government bond which is mostly used for saving of income for future and for tax benefits.

Any person who is not a minor can purchase National Saving Certificate from post office. Other than that a minor can buy NSC in his legal representative name. National Saving Certificate is a low risk and high return investment. Government Issue NSC for 5 years and 10 years however holder of NSC have pledge it to bank for loan.

Who should invest in NSC

National Saving Certificate is a Government Bond which is issued for 5 or 10 years. Any person who has low or mid income can invest in NSC. Any person, who wants to invest their money without risk, can buy National Saving Certificate.

The process of investing in NSC is very simple. Any person can buy NSC from Post Office. Investing in National Savings Certificate is risk free investment but the return is also less.

Benefits of NSC

  1. National Saving Certificate is a risk free investment
  2. In National Saving Certificate an investor can get a fixed return of 6.8 % per annum.
  3. NSC is a best Investment Scheme for a person who has low or min income. Hear a person can start investment from 500 rupees.
  4. NSC is a tax saving investment hence you can claim tax benefit on 1,50,000 under section 80C of Income Tax.
  5. Maturity period of NSC is 5 years however investor can pledge it to bank before maturity.
  6. Interest rate on National Saving Certificate (NSC) is 6.8% which is better than bank’s saving bank interest.
  7. Compounding of interest, interest you earned on your investment will be compounded.

Tax Benefits of NSC

A tax payer person can claim tax benefit on the 1,50,000 under section 80C of Income Tax Act. Not only the investment but interest on investment is also eligible for tax benefit.

Interest on NSC is compounded annually from 1st to 4th year and redeemable at the end of 5th year i.e. on maturity of National Saving Certificate (NSC).

FAQ (Frequently Asked Questions)

1. What is NSC and its benefits?

Answer. NSC is a Government Bond. This is beneficial for low income investor since they can earn a fix income from here.

2. Is NSC a good investment?

Answer. Yes, NSC is a very good investment and especially for those who have low or mid income and who want to invest their money without risk.

3. Is NSC taxable on withdrawal?

Answer. If the investor withdraws after maturity then it will not be taxable and if investor withdraws before maturity then it will become taxable.

4. What is the full form of NSC?

Answer. NSDL full form is National Saving Certificate.

5. Is NSC available in banks?

Answer. No, a person can buy National Saving Certificate (NSC) only from Post Office.

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