Article writing National saving Certificate

Posted onAuthorPriyanka Karmakar

Article writing

National saving Certificate

National saving certificate popularly known as NSC, is an India Government savings bond, primarily used for small savings and income tax saving investments in India . it is part of the postal savings system of India post . the holder gets the tax benefits under section 80C of income tax Act ,1916.

 

How to buy NSC online

Presently NSC`s cannot be bought online . following are the key steps for making NSC investments : fill out the NSC application form, available online as well as at all India post offices. Submit self-attested copies of required KYC documents.

 

How to buy NSC

  1. ) You need to fill the NSC applications form available at the post office .
  2. ) Carry original identify proof for verification at the time of buying.
  3. )You can buy the certificate with cash,cheque or demand draft drawn in favour of the postmaster of the post office from where you are buying the NSC.

 

How to shows NSC interest in income tax

Method 1- you show the interest earned under the category of income from other sources as well as deductions on NSC under sec80c every year . see the below illustration on how it work .

 

Method 2-you claim deductions for interest earned on NSC in the year for deduction,but,you don’t show it as income .in this case, the entire interest income will be counted as income in the  last year…

 

Method 3- You don’t claim the interest earned in for the deduction and you don’t mention it as income . in this case ,the entire interest amount will be counted as an income from other sources in the last years , but only first four years will be counted as a deduction .

 

NSC come under which section

The money you invest into NSC gets income tax deduction under section 80C of the Income Tax Act ,1961.

 

NSC or KVP which is better

Unlike KVP,NSC provides tax advantages .The NSC, known as the National saving Certificate ,is an investment pool that includes both assured returns and tax benefits . whereas the government is also supporting both schemes , there are many gaps if we compare both these schemes.

 

How to open NSC in post office

You need to fill the NSC application form available at the post offices .carry original identify proof for verification at the time of buying . you can buy the certificate with cash , cheque or demand draft drawn in favour of the postmaster of the post office from where you are buying the NSC .

 

How to calculate NSC interest

  1. )Go to scrip box NSC interest calculator.
  2. Enter the amount of investment.
  3. The term is already fixed at five years .
  4. The interest is fixed at 6.8%
  5. Once the values are entered,click on calculate .
  6. The NSC interest rate calculator calculates the maturity amounts.

 

Which is better ? NSC or PPF

 

They are  the public provident fund and national saving certificates Both the small savings (PPF and NSC ) provide safety of capital and guarantee interest payments over the tenure of the scheme.

 

How long does it take for NSC to provide maturity amount double the principal amount

 

NSC will take about 10.5 years to double your investments at the current interest rate of 6.8% p.a

 

How to get NSC certificate

 

Fill out the NSC applicant form, available online as well as at all Indian post offices Submit self attested copies of required KYC documents . You must carry the original documents as well for further verification  . Make the payment of the amount to be invested by cash or through cheque.

 

How  to check NSC certificate online?

 

  1. You have to opt for this option only if you have a savings accounts with the bank/posts office.
  2. You have to apply for interest banking.
  3. Once internet banking is facility , then you can view all your holding exactly like online bank FD s or RD s
  4. There will not be any serial number from now onward
  5. Minimum of Rs.

 

Does ULIP or NSC  provide tax benefits u/s 80c

 

2 lakh in total on PPF ULIP s and NSC you can avail a total deduction of Rs. 1.5 lakh Premium paid for a ULP on a yearly basis is exempt from income tax up to Rs. 1.5 lakh (the limit being applicable on total of all investments under Section 80C.)

 

How to transfer NSC to another Post Office?

The NSC account holder can transfer the certificate from one person to another by submitting the necessary documents.  From NC-32 has to be submitted with signature. Approval will be provided after the postmaster verifies the detail provided.

 

How to fill an NSC application form?

 

 

Step 1 : Fill up the applicant form with the relevant information such as the post office branch name your savings account numbers held with post office and applicant name.

 

Step 2 : Paste the applicants photography and select the account you would like to open i.e NSC VIll th issue from the options.

 

Step 3 – Select the account holder type and account type from the available options.

 

Step 4 – In case of Minor through guardian fill up the details o

f the minor in the table 1

 

Step 5 – Specify the amount would like to deposits to open the account in figures and words. If providing cheque or DD please write the serial numbers and date on it.

 

Step 6 – Now, provide all the personal and contact details of the applicants in the table 2

 

Step – 7 All the applicants must add their signatures at the end of the page along with their names.

 

Step 8 – Next, skip to the Nomination section and enter the applicants names and the nominees name. In the table provided provide details such as the applicants relationship with the nominee full address Aadhaar numbers and others.

 

Step – 9 In case of illiterate applicants add signatures of two witnesses for the same along  with the applicants signatures That it!

 

 

How to find the NSC certificate numbers?

 

From – NC29 which is the application form for duplicate certificates Statements with details of the NSC account number date of issuance and amount. From NC – 54 (A) which is a bond of indemnity certificates.

 

How to withdraw NSC before maturity?

 

  1. NSC encashment form.
  2. NSC certificate (original)
  3. Proof of identify (driving license voter ID)
  4. Signature of the nominee on the certificate is required Attestation by a guardian is mandatory in case a certificate is purchased on the behalf of minor.

 

Which is better ? NSC or KVP 

 

Unlike KVP NSC provides tax advantages The NSC known as the national saving certificates is an investments pool that includes both assured returns and tax benefits. Whereas the government is also supporting both schemes there are many gaps if we  compare both these schemes.

 

Which is better ? NSC or 5 years Tax Saving FD?

 

In case of bank FD one has the option to either accumulate the interest and receive payment on maturity or go for a quarterly payout Both NSC and tax savings bank FD have the same tenure and no upper limit. On investments However experts generally prefer NSC given the higher interest rates it is offering currently.

 

What is the minimum  amount for NSC?

 

The minimum amount require to open a NSC  account is Rs 1000 If you want to deposits a higher amount you can do so in the multiplies of Rs 100.

 

How to know my NSC ID ?

Form-NC29, which is the application form for duplicate certificate. Statement  with details of the NSC account such as name ,account number ,date of insurance and amount . Form NC-54 (a), which is a bond of indemnity certificate.

 

How to link NSC with Aadhaar?

Step 1: log on to your internet banking account using your user ID and password .

Step 2: click on the link “registration” of aadhaar number in “Internet banking “ on the home page .

Step 3: enter your 12 digits aadhaar number their in and click on “confirm”.

 

What is the NSC Vlll  issue ?

the main feature of NSC issue Vlll are that it has no limits  on the maximum investment possible. It also comes with an interest rate of 6.8%per annum and do TDS . the investment can be used to secure loans and get tax benefits up to Rs.1.5lakhs under section 80C of the IT act.

 

How to pledge NSC?

Pledge of NSC s can be made only to approved p[ledges under the relevant post offices rules. Such a pledge can be made in flavour of the Reserve Bank of India ,scheduled banks ,co-operative society or banks , a corporation or the government or local authority. The post office will scrutinise and verify the application.

 

NSC s is  for how many years?

NSC Vlll issue that is currently available for subscription comes with a tenure of five years.

 

How to verify an NSC certificate?

Step1: Apply for internet banking at your Post office or bank. Once it is approved , you can access your NSC account online.

Step2: there will not be any serial numbers any more . Instead , an account number will be issued .

 

NSC vs LIC ? which is better?

 

Parameter NSC LIC
Objective Small savings with returns . life cover with sum assured.
Payment frequency One-time lump sum payment. Premium can be paid in monthly ,quarterly ,yearly interval.
Tax benefits Capital invested gets income tax deduction under section 80C Capital,interest earned ,and maturity amount are exempt from tax .
Sub-categories None as of now . Many different life insurance schemes are available .