NSC Maturity
- For all certificates the NSC maturity period is 6 years.
- At the time of Maturity, the NSC maturity claim can be encashed directly from post office or through bank.
- The person entitled to receive the NSC maturity amount shall, at the NSC maturity period i.e. while its encashment, must sign on the back thereof in token of having received the payment. If during NSC maturity period the minor in whose name NSC Certificate was bought attains majority, then such certificate shall be signed by such a person himself.
- If even after the NSC maturity period, if the NSC maturity claim is not withdrawn/ encashed then it will be entitled for interest which pertains to Post Office Savings Scheme.
Tax on NSC maturity
- At the end of NSC maturity period there will not be any tax liability on the Principal amount invested.
- Interest received from the NSC maturity claim will be treated as Income. That means the liability of Tax on NSC maturity is limited only to Interest Income.
- The interest income received at the end of NSC maturity period is entitled for rebate U/s 88 of Income Tax Act.
- The Interest received will not be subjected to TDS. That means Tax on NSC maturity has to be calculated by the owner itself after taking into account Rebate U/s 88, and has to pay tax voluntarily (self assessment tax) if he falls in the tax bracket.
- He may take the help of NSC maturity value calculator to find out interest amounts received at the time of NSC maturity which pertains to previous years to calculate the rebate amount of Tax on NSC maturity.
Premature Encashment
- Possible after the completion of three full years.
- If so the owner will not get the full NSC maturity claim /money. It will be as follows:
|
NSC Maturity Value if there is Pre Closure
|
|
At the
End of
Year
|
Period during which NSC Certificate was Purchased
|
|
01.03.2001 to
28.02.2002
|
01.03.2002 to
28.02.2003
|
01.03.2003
Ondards
|
|
1
|
-
|
-
|
-
|
|
2
|
-
|
-
|
-
|
|
3
|
126.43
|
124.62
|
121.15
|
|
3.5
|
131.71
|
129.51
|
125.09
|
|
4
|
136.9
|
134.29
|
129.16
|
|
4.5
|
142.48
|
139.43
|
133.36
|
|
5
|
147.98
|
144.46
|
137.69
|
|
5.5
|
153.89
|
149.83
|
142.16
|
NSC maturity value calculator
- NSC maturity value calculator can be easily developed on Microsoft Excel based on the above information.
- NSC maturity value calculator is one which calculates the NSC maturity claim value and Tax on NSC maturity for any amount of money invested based on the respective NSC interest rate.
Alternatively an investor can take the benefit of NSC maturity value calculator available in the following link: http://www.kwatraonline.com/OtherpageTheme6.aspx?TYPE=HORIZONTAL&CompanyID=0&PAGENAME=Cal_NSC&Parent=Calculators&Current=NSC
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