Start investing in this government scheme from Rs 1000, you will get good returns along with tax benefits.

Tax Saving Scheme: Often people want to get big returns by investing their money, but due to fear of unsafe investment they do not invest their money anywhere. But to increase the savings of low income people, many savings schemes are being run by the government. In these, pre-fixed interest is also available and security of investment is also guaranteed. One such small savings scheme is the National Savings Certificate Scheme. In this, along with good returns on investment, investors also get tax exemption, due to which it is becoming very popular among low income investors. Let us know about it in detail.

there is income tax exemption

The National Savings Certificate Scheme facilitates investment through both electronic mode and passbook mode. Apart from this, investing in it gives the benefit of tax deduction under Section 80C of Income Tax. In simple words, by investing in this scheme, you are not only earning good returns, but you also get income tax exemption of up to Rs 1.5 lakh. Because of which it remains quite attractive among the people. Apart from this, unlike fixed deposits, TDS is not levied on the interest amount of National Savings Certificate.

Who is eligible to invest in NSC?

Any Indian can open his account in NCC. It also provides the facility of opening a joint account between two people. Apart from this, minors can also open their account. You get both online and offline facilities for investing in this scheme. You can invest online through the internet banking of the post department, whereas for offline, you will have to go to the nearest post office.

The investment will have to be made for such a period of time

Let us tell you that investment in these schemes is for five years and there is no option to close the NSC account before this period. However, it can be closed on the death of the depositor, forfeiture by word of a Gazetted Officer or on the order of a court.

What is the interest rate

Investment in this scheme can be started from a minimum of Rs 1000, while there is no limit on maximum investment in multiples of Rs 100. Currently the government is offering an annual interest rate of 7.7 percent, which is adjusted every three months.