NSC Calculator
Calculate National Savings Certificate returns
NSC Investment Details
Minimum Rs 1,000, no maximum limit
You can purchase multiple certificates
Tenure: 5 years (fixed)
Tax Details
Your highest income tax slab rate
- Principal qualifies for Section 80C (up to Rs 1.5L)
- Accrued interest (years 1-4) also qualifies for 80C
- Interest taxable in year of maturity
NSC Returns
Enter NSC details and click Calculate
See your maturity amount and tax benefits
Understanding National Savings Certificate (NSC)
What is NSC?
National Savings Certificate (NSC) is a fixed-income investment scheme offered by the Indian Post Office. It is backed by the Government of India, making it one of the safest investment options. NSC is popular for its tax benefits under Section 80C.
Key Features
- Tenure: Fixed 5-year term
- Interest Rate: 7.7% p.a. (reviewed quarterly by government)
- Compounding: Annual (interest reinvested automatically)
- Minimum Investment: Rs 1,000
- Maximum Investment: No upper limit
- Nomination: Facility available
Tax Benefits
- Section 80C: Investment up to Rs 1.5 lakh qualifies for deduction
- Accrued Interest: Interest earned in years 1-4 also qualifies for 80C (deemed reinvested)
- Maturity Interest: Entire interest is taxable in the year of maturity
- No TDS: TDS is not deducted on NSC interest
How the 80C Benefit Works
| Year | 80C Eligible Amount | Tax Treatment |
|---|---|---|
| Year 1 | Principal + Interest accrued | Deductible |
| Year 2 | Interest accrued | Deductible |
| Year 3 | Interest accrued | Deductible |
| Year 4 | Interest accrued | Deductible |
| Year 5 | Interest accrued | Taxable as income |
NSC vs Other 80C Investments
| Feature | NSC | PPF | Tax-Saver FD | ELSS |
|---|---|---|---|---|
| Lock-in | 5 years | 15 years | 5 years | 3 years |
| Returns | 7.7% | 7.1% | 6-7% | 10-15%* |
| Risk | Zero | Zero | Zero | High |
| Tax on Returns | Taxable | Exempt (EEE) | Taxable | LTCG >1.25L |
*Market-linked, not guaranteed
Who Should Invest in NSC?
- Risk-averse investors seeking guaranteed returns
- Those looking to maximize 80C benefits
- Investors wanting government-backed security
- People with 5-year investment horizon
- Senior citizens seeking safe fixed-income options
How to Invest
- Visit any Post Office with Savings Account facility
- Fill the NSC application form
- Provide KYC documents (Aadhaar, PAN)
- Make payment by cash/cheque/demand draft
- Receive NSC certificate (physical or e-Certificate)
Premature Withdrawal
Premature withdrawal is not allowed except in specific cases like death of holder, forfeiture by pledgee, or court order. The lock-in is strictly enforced.
Disclaimer: This calculator is for informational purposes only and should not be considered financial, tax, or legal advice. Results are estimates based on the information provided and current tax laws. Consult a qualified professional for advice specific to your situation.
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