NSC Calculator
Calculate your National Savings Certificate returns
Investment Details
Year-wise Breakdown
| Year | Opening Balance | Interest Earned | Closing Balance | 80C Eligible |
|---|
*Interest from years 1–4 is deemed reinvested and qualifies for Section 80C deduction. Year 5 interest is taxable as income.
NSC Returns
What is National Savings Certificate (NSC)?
National Savings Certificate (NSC) is a fixed-income investment scheme offered by Indian Post Offices. It is a popular small savings instrument backed by the Government of India, making it one of the safest investment options available. NSC VIII Issue currently offers a 5-year maturity period with interest compounded annually but paid at maturity.
Key Features
NSC can be purchased from any post office with a minimum investment of ₹1,000 and no maximum limit. The interest rate is set by the government every quarter. Interest is compounded annually and deemed to be reinvested, which means only the final year's interest is taxable while previous years' interest qualifies for Section 80C deduction.
Benefits of NSC
- Government-backed, zero-risk investment.
- Tax deduction under Section 80C on investment and reinvested interest.
- No TDS on interest income.
- Can be used as collateral for securing loans from banks.
- Available at all post offices across India.
NSC as a Tax-Saving Tool
NSC combines reasonable returns with sovereign guarantee and tax benefits. The reinvested interest qualifies for 80C deduction, effectively reducing the tax burden in years 1-4. It suits conservative investors who prefer government-backed instruments over market-linked options.
Frequently Asked Questions
What is NSC?
National Savings Certificate (NSC) is a government-backed savings instrument available at post offices. It has a 5-year lock-in, currently earns 7.7% interest compounded annually, and qualifies for Section 80C tax deduction.
Is NSC interest taxable?
NSC interest is taxable at your slab rate. However, the interest earned in years 1-4 is deemed to be reinvested and qualifies for 80C deduction (within the ₹1.5 Lakh limit). Only the interest in the final year is taxable without 80C benefit.