InvestorQ : How can one invest in the National Savings Certificates (NSC)?
Riya Dwivedi made post

How can one invest in the National Savings Certificates (NSC)?

Answer
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Mitali Bhutta answered.
2 years ago


The NSC is also offered as a deposit scheme by the Post Offices. NSC is similar to the KVP in the sense that the interest is accrued and not paid out each year; but only at maturity. But the key difference is that interest paid on the NSC is tax-free while interest paid on the KVP is taxable. The second advantage that NSC has over KVP is that while KVP is not eligible for exemption under Section 80C of the Income Tax Act, investments in NSC are eligible for such exemption subject to the overall maximum limit of Rs.150,000. The annual interest accrued in NSC is 8% which makes it slightly more attractive than the NSC, apart from the tax benefits that NSC proffers.