National Savings Scheme Certificate - Post Office Tax Savings - India

NATIONAL SAVINGS SCHEME CERTIFICATE VIII issue (NSC)

Name of the Scheme NSC VIII Issue
Interest 8.16%
Maturity Period 6 years
Limit of Deposit Min:Rs.100 Max: No Limit
I.T.benefit In the Union Budget 2005 the Tax benefit is given upto the deposit of Rs.1,00,000/-
Place of Deposit All Head Post Offices and authorised Post Offices

Who can Invest

An adult for himself or on behalf of a minor, jointly by two adults, a minor and a Trust.

How to Purchase

Certificate in denomination of Rs. 100, Rs.500, Rs. 1000, Rs.5000 & Rs. 10,000 may be purchased from any post office, either directly or through authorised agents. In addition to cash, locally executed cheque, pay order or demand draft in favour of the Post Master are also accepted.

Rate of Interest

Rate of interest is 8.16% p.a. compounded half yearly and paid after the maturity period of six years along with principal.

Annual accrual rate of interest on investment of Rs.100/- is as under and is in proportion for other denominations.

1st year Rs. 8.16
2nd year Rs. 8.83
3rd year Rs.9.55
4th year Rs.10.33
5th year Rs.11.17
6th year Rs.12.08

Encashment
Can be encashed after 6 years.

A certificate can be encashed at the post office at which it stands registered. A certificate may also be encashed at any other post office if the Officer –in –charge of that post office is satisfied on verification from the office of its registration that the person presenting the certificate for encashment is entitled thereto.

Tax Benefit

In the Union Budget 2005 the Tax benefit is given upto the deposit of Rs.1,00,000/-

Source: tnsmallsavings.com