NSC: Deposit Rs 15 Lakh for 5 years in this post office scheme to get Rs 21.73 lakh return

 

NSC is a fixed-income investment programme that may be opened at any post office branch. The Government of India launched this programme to encourage subscribers, primarily small to mid-income people, to invest.

NSC: Deposit Rs 15 Lakh for 5 years in this post office scheme to get Rs 21.73 lakh return

Indian Post provides several investment schemes to meet the diversified demands of its investors. All post office savings plans guarantee returns since they are sponsored by the Government of India. Furthermore, the majority of post office investment programmes are tax-exempt under Section 80C.

One such popular schemes is National Savings Certificate (NSC). This is a fixed-income investment programme that may be opened at any post office branch. The Government of India launched this programme to encourage subscribers, primarily small to mid-income people, to invest.

More details on the NSC scheme:

Interest rate: 7.7 per cent
Minimum investment: Rs 1,000
Maximum investment: No limit
Lock-in-period: 5 years
Risk profile: Low
Tax benefit: Up to Rs 1.5 lakh under Section 80C
Eligibility: Only Indian citizens

What happens when you invest Rs 15 lakh in the NSC scheme?

The minimum amount to invest in this scheme is Rs 1,000 and there is no upper limit. 

And two to three people can also open a joint account to invest together in this scheme

For minors, their parents can invest on their behalf.

By investing Rs 15 lakh, one can get Rs 6,73,551 as interest at a 7.7 per cent interest rate — earning a total corpus of Rs 21,73,551 upon maturity.

What documents do you require to apply for NSC?

  • The NSC application form should be filled out correctly and submitted.
  • For that, investors need original identification proof such as a passport, permanent account number (PAN) Card, voter ID, driving license, senior citizen ID, or government ID for verification.
  • They also need to submit a photograph.
  • For address proof, the investor needs either of these documents: passport, telephone bill, electricity bill, and bank statement along with a cheque.

Maturity period and premature withdrawal

NSC investments cannot be withdrawn before the five-year maturity term. However, under specific circumstances, early withdrawal is permitted. 

The following are the instances where early withdrawal is permitted under the NSC scheme:

i) In case the certificate holder dies.
ii) On the forfeiture of the certificate. However, the pledgee has to be a Gazetted Government Officer.
iii) The invested cash may be withdrawn if a judge orders it.
iv) To withdraw the funds, the certificate holder must provide specific documentation.

Comments

Post a Comment

Popular posts from this blog

Senior Citizen Train Ticket Discount: Government has issued a new statement regarding giving discount to senior citizens on train tickets, know the details here

Image
  Senior Citizen Train Ticket Discount: Once again a demand has been made in the Lok Sabha to give discount to senior citizens on train tickets. Senior Citizen Train Ticket Discount:  Railways has withdrawn the discount given to senior citizens on train tickets since the Corona period. However, from time to time there has been a demand to restore this concession given to senior citizens in trains. Even in the winter session of the Lok Sabha, some members raised the demand for increasing fare concessions and facilities for senior citizens traveling in trains. However, even before this, Railway Minister Ashwini Vaishnav has told in the Lok Sabha that during the train journey, every passenger is given an average subsidy of 53 percent on the train ticket. Apart from this, he also told who gets discount on tickets while traveling by train. Demand for discount in train tickets raised again During Zero Hour in the House, Janata Dal (United) MP Kaushalendra Kumar said that before the ...
Read more

Cash Transaction Rules: Income tax rules on cash transaction between Husband-Wife and Son-Father, know rules

Image
  Cash Transaction Rules: Income tax keeps an eye on our every transaction. But is there any tax on cash transactions or can Income Tax send a notice? Or how much cash transaction can take place between you and your wife or between father and son? If you also have these questions in your mind, then let us know their answers… If you also transact money between father and son or between husband and wife, then this news is useful for you. Actually, every transaction of ours has an eye on income. In such a situation, a question arises in the minds of many people whether income tax notice can be received even on cash transactions? Let us know how much cash transaction you can do in your family. Income tax sends notice? According to tax experts, if you give money every month for household expenses or give money as a gift, then the wife is not liable for income tax. Both these types of amounts will be considered as the income of the husband. The wife will not receive any notice from the I...
Read more

Have a Current/Savings Bank Account? Know the Cash Deposit Limits under Income Tax Act to avoid Penalties and Notices

Image
  Adhering to cash deposit and withdrawal limits is crucial to remain compliant with the Income Tax Act in India. This article aims to elucidate the various facets of cash-related regulations, encompassing savings and current accounts, fixed deposits, credit card bill payments, real estate transactions, and more.  Cash Deposit Limits in Savings and Current Accounts The Indian Income Tax Act imposes specific regulations on significant cash deposits in savings accounts. Individuals accumulating INR 10 lakh or more during a fiscal year must notify tax authorities.  For current accounts, this threshold is set higher at INR 50 lakh. Although not immediately taxed, financial institutions report transactions exceeding these limits.  Cash Withdrawal and TDS under Section 194N  Section 194N outlines TDS rules for cash withdrawals. A 2% TDS is levied on withdrawals exceeding INR 1 crore within a fiscal year. Non-filers face a 2% TDS on withdrawals over INR 20 lakh and a 5...
Read more