To qualify for income tax exemption for the fiscal year 2021-22, you must invest in certain schemes by March 31. In this case, if you want to save tax and earn a higher return on your investment, you can invest in the Post Office’s National Savings Certificate (NSC) scheme. This scheme currently pays an annual interest rate of 6.8 percent. We’re informing you about this scheme.
The interest rate on this is 6.8 percent per year.
This scheme is currently paying 6.8 percent interest. This post office scheme requires a minimum investment of 1000 rupees. You can put any amount of money into NSC. This has no maximum investment limit. NSC has a 5-year lock-in period.
Accounts in the names of children can also be opened. An account in the name of a child can also be opened under this scheme. If the child is under the age of ten, the account can be opened in his or her name on behalf of the parents. When a child reaches the age of ten, he can operate his own account, and when he reaches the age of adulthood, he takes full responsibility for the account.
Aside from that, a person over the age of 18 can invest in NSC on his or her own behalf or on behalf of a minor. This account can also be opened in the names of three adults as a joint account.
Read More: Every month, the interest of 50,000 will be available; invest in the name of any family member.
You can claim tax exemption on any money you invest in the National Savings Certificate under section 80C of the Income Tax Act. You can get a tax break on this by investing a maximum of Rs 1.5 lakh in NSC in a fiscal year.
An NSC account in the name of another person can be transferred. NSC can be transferred from one person’s name to another. The name of the previous NSC holder is surrounded in this case, and the name of the new NSC holder is written on the NSC.
There is a 5-year lock-in period in this; if you want to withdraw your investment, you must wait 5 years. It has a 5-year lock-in period. That is, you will be unable to withdraw your funds before the age of five years.
When does money double in value?
It is currently earning interest at a rate of 6.8 percent per annum. In this case, according to the rule of 72, if you invest in this scheme, it will take 10 years and 6 months for your money to double.
Keep these considerations in mind before investing in it.
You will not be able to withdraw the interest earned on it intermittently during the maturity period if you invest in this scheme.
This has a 5-year lock-in period, which means you won’t be able to withdraw money for 60 months. As a result, this scheme is not appropriate for those looking to invest for 1-2 years.
