National Savings CertificateThis certificate is a saving bond for investment as well as saving income tax in India.
National Savings Certificate
NSC or National Savings Certificates is a popular bond for saving purposes, utilised by people for small scale and income tax exemption investments in India. It is one of the saving profiles under the Indian Postal Service, known as India Post. NSC can be bought by someone who is an adult, from the post office, in one’s own name or in lieu of a minor, or a trust or even two adults can jointly purchase these certificates. Although, in earlier days, the Hindu Undivided Family or HUF was allowed to purchase these certificates, presently they cannot do so. The NSCs are issued for a maturity period of about 6 years and even can be used for getting loans from banks by pledging them. tax exemption benefit is possible for the holder of NSC under the 1961 Income Tax Act, under 80C section. There are many other schemes like this under the government, such as Kisan Vikas Patra, Public Provident Fund or PPF, Post Office schemes of recurring deposits or fixed deposits.