Investment in National Savings Certificate of India Post (2)

Scope of income tax rebate:

If you are an income tax payer, you might be looking for sources where you can invest and get tax rebate at the same time. NSC is here for you. It comes under section 80C of IT Act. Your NSC deposits qualify for tax rebate, but don’t forget to calculate the total amount of your 80C investments. As per 80C, you can only invest a maximum of Rs. 1,50,000/-.

Transfer of NSC from one person to another:

Yes, this is possible. NSC after opening can be transferred to another person only once from the date of opening to the date of maturity. In this case, the old name will be rounded up by the post office and the new holder name will be written on the passbook while following other procedures and formalities.

How money grows through this investment?

Though there is a rate of interest 7.9% is paid for the NSC, you might be looking for a real calculation that shows your money growing and after 5 years this much you are getting against your investment from this scheme. Let’s have a calculation for worth of Rs. 70,000/-

NSC calculation:

Base investment amount – Rs. 70,000/-

Interest provided by IPPB – 7.9% per annum which is compounded annually

Investment period – 5 years

Based on the above details let’s calculate and see how much you will get after 5 years.

Year——-Interest for the year—–Total interest —–Total balance for the year






During maturity, the amount Rs. 70,000/- becomes Rs. 102,377.68/-. It means a total amount of Rs. 32,377.68 is your profit from seventy thousand rupees’ investment. Additionally, you have the tax rebate over base investment amount for the 1st year. Isn’t it a good investment plan? Hope this article will help Indians who plan for a long-term investment and good returns over a period of five years. As India Post is a government entity, it is safe and 100% secure.

Please Wait