What is NSC interest rate 2020?

What is NSC interest rate 2020?

The NSC interest rates are fixed by the government and revised quarterly. The NSC interest rate in 2020 and 2021 currently stands at 6.8%, compounded annually. Investors can enjoy several tax benefits on the investment amount as well as the interest earned under Section 80C of the Income Tax Act, 1961.

Can I buy NSC for 10 years?

NSC Maturity Period National Savings Certificates come with two term periods, one for 5 years and the other for 10 years. Investments in these certificates which come under the VIII issue mature after 5 years whereas those purchased under the IX issue mature after a period of 10 years.

Is NSC interest rate fixed for 5 years?

Tenure / Lock-in Period: As mentioned in the above tables, the tenure of both NSC and FD is the same as 5 years. In the case of NSC, the rate of interest is calculated every half-yearly, whereas for Fixed Deposits of banks it is calculated every quarter.

Is NSC or KVP better?

Tax Benefits Investments upto 1.50 lakh in NSC qualify for a tax deduction under 80C up to 1.50 lakh in a financial year. Income from NSC interest is taxable and applicable according to the income tax slab. On the other hand, KVP does not offer any tax benefit. Income from the interest is also taxable.

What are the interest rates of NSC in India?

NSC interest rates vary depending on their NSC’s maturity. These schemes introduced by the Government of India are available with two tenors variants for maturity. The rate of interest provided as per the maturity periods are listed below along with their tenure and issue numbers:

What’s the interest rate on National Savings Certificate?

Interest Rate on National Savings Certificate The National Savings Certificate interest rate is subject to periodic change as per the decisions communicated by the Finance Ministry. The applicable NSC interest rate for Q1 FY 2021-22 (April to June) is 6.8%. The NSC rate in the previous quarter (January to March 2020) was also 6.8%.

Is the interest earned on NSC certificate taxable?

Is NSC Interest Taxable? NSC’s interest is taxable on maturity only. The NSC interest is not taxable until it is paid to the certificate holder that means you can avail benefits of tax exemptions on the interest earned every year till the maturity year.

Where can I buy a National Savings Certificate in India?

National Savings Certificate (NSC) is a tax saving investment that can be purchased from any post office by an Indian Resident. Being a fixed return and low risk Government of India-backed investment, NSC is usually preferred by risk-averse investors or those seeking to diversify their portfolio through fixed return instrument.