NSC India

National Savings Certificates - The Advantages of buying them

National Savings certificate as the name suggest is an option provided by the Indian Government for investment lining both personal savings of an individual and developing national savings. Nscindia certificates are published through Post Offices, the authentic and Indian Government approved government body that is authorized to release the certificates.
Nscindia certificates are termed as one of the safest form of investment which has tax advantages as follows:

Investment:

Investment throughout the life

The enactments of parliament which governs National Saving Certificates in India or Nscindia are The Post Office National Savings Certificates Ordinance, 1944, National Savings Scheme, 1992 and NSC (VIII) Issue Rules, 1989.

NSC Saving Certificate salient features:

With the availability in 100, 500, 1000 and 10,000 denominations the range of starting and ending the investment is quite varied, also the upper limit is unconditional and unlimited in Nscindia. Normally the maturity period for Nscindia is 6 years @ 8% interest p.a. cumulated half yearly, but if someone wants to mature it early after 3 years at the same interest can be done. With a nominal fee the Nscindia certificates can be transferred from person to person or branch to branch.

Why NSC and how to start it :

Being one of the safest modes of investment being sponsored by Indian government Nscindia it provides a rate of 8% p.a. (cumulated half yearly), it is one of the most easily available form of investment available at all the Post Offices, the principle amount having a tax benefit under the 80C and therefore so the interest in Nscindia as it would be a reinvested amount will also have the same benefit. Even the interest that is received at the end will not be taxed under TDS and Nscindia deposits would not be treated as assets U/s 2 (ea) of Wealth Tax Act 1957

To start a NSC Nscindia has given two conditions :

1.) The holder should be an Indian Resident

2.) Holder to be an Individual or Trust:

If you satisfy the above two conditions, then you may approach your nearest Indian Post Office and make a requisition for the same. Investment in NSC India can be made in the name of Single Holder, Joint name or in the name of Minor Child.

NSC Calculator:

To understand it in a very simple term if it is said 8% then according to (Rule 15(6) of the NSC (VIII) Issue Rules, 1989) it is 8.16% so NSC Calculator would come to a figure using this for income tax purposes, which means that a 100 rupee invested in Nscindia today will become 160.1/- after six years, but in the case of preclosure which is possible only after 3 years the amount will be less eventually.

The NSC Calculator is very easy to develop using Microsoft Excel and the NSC Calculator then can be used to calculate the maturity value and NSC interest rate depending upon the money invested and the Post Office’s NSC interest rate.

The NSC Calculator is available on the link given below: 
http://www.kwatraonline.com/OtherpageTheme6.aspx?TYPE=HORIZONTAL&CompanyID=0&PAGENAME=Cal_NSC&Parent=Calculators&Current=NSC

What if NSC certificates are lost?

In case of NSC certificates destroyed or lost duplicate certificates can be issued after the application asking for a duplicate one at the same post office where the older one was registered. Apart from that an indemnity bond and an FIR stating the loss of NSC certificates bond lost along with necessary details needs to be submitted.