A National Saving certificate (NSC) is a secure way to invest and earn a decent profit. The National Saving Certificate was introduced by the Government of India. You can apply for NSC by visiting the Post Office. NSC not only gives good returns on investment it also helps to save on taxes. But is national saving certificate taxable? This is a question we should ask before investing in NSC. I will share with you when is NSC taxable?
Now make payment of all your utility bills through your credit card and earn exciting cashback and rewards. Get home loans at the lowest interest rate from NoBroker and avoid hefty paperworkIs NSC tax free?
The interest earned or accrued on an NSC can be taxable. Therefore, while filing tax you should always add the taxable income of the investor every year and calculate the tax as per the income tax slab.
However, you should know that there are many benefits you can gain from NSC. The interest you get from NSC is automatically reinvested and added as principal. And for this, you can claim a deduction from taxable income under section 80C of the income tax act. But you can only get tax exemption only up to a maximum amount of Rs.1.5 lakh under section 80C.
So, the important question is: Is NSC maturity amount taxable?
After a tenure of five years when the NSC matures. So, the amount that is matured remains taxable if the money is not reinvested once again. You cannot claim a deduction after your NSC is fully matured.
I hope this answers your question: is national saving certificate taxable?
Read more:
Where to Open
NPSAccount?
Can I Open
NPSAccount Online?
What is national saving certificate?
Is national saving certificate taxable?
Sehenaaz
433 Views
1
2 Year
2022-08-18T10:28:28+00:00 2022-08-18T10:28:31+00:00Comment
Share