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4. National Savings Certificate (NSC)
Under Section 80C, tax deductions on the investment can be claimed up to Rs.1.5 lakh. Presently, the interest rate of 6.8% p.a. is applicable. Interest will be accumulated annually and paid only upon maturity. The interest accrued is taxable upon maturity and must be added to the gross annual income. Under Section 80C, the interest reinvested and multiplied is eligible for a tax deduction.
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Here are 10 Saving Schemes and Plans where you can Invest for a Secure Future:
National Savings Certificate (NSC) : National Savings Certificate, another government-backed saving scheme, furnishes guaranteed returns along with tax-saving investments. You can capitalize on an NSC at the neighbouring post office. The lock-in period for the scheme is five years. The government evaluates the interest ratio of the scheme once every quarter and verifies it. However, the interest rate will not alter during the term after you acquire the certificate. Tax deductions can be claimed on the investment up to Rs.1.5 lakh under Section 80C. Nowadays, the interest rate of 6.8% p.a. is applicable. The interest will be yearly compounded and compensated only on maturity. Upon maturity, the interest accrued is taxable and must be added to the cumulative annual income. The revenue reinvested and compounded is competent for tax deduction under Section 80C. Learn more about National Saving Certificate