National Saving Certificate (NSC) is saving scheme, which brings in Tax benefit as well as secure your future. Investments in NSC can be claimed for deduction under Sec 80C up to the overall limit of Rs. 100000. Further, the deposits are exempt from Wealth Tax. Even the interest earned during the first 5 years is deemed to be reinvested and can be claimed as deduction under the section.

Investment in NSC is variable and ranges from a minimum of Rs. 100 to one own choice. The amount can be further reinvested upon maturity. Moreover if one does withdraw the maturity proceeds, the amount is eligible for Post Office saving interest for a maximum of two years. The certificates can be pledged with banks for immediate cash needs, or it can be encashed through banks. Technically, NSC is a transferable certificate. The holder can transfer it to another person as and when needed.

The above understanding may vary to some extent in the Direct Tax code (DTC) Regime which will be effective from April 1, 2012. Taxmantra.com offers excellent tax support in addition to filing of return of income and comprehensive tax planning. At Taxmantra.com we do not put you at pain by asking to fill in long tax forms. You just need to fill in a form with basic details after attaching your salary certificate/ other income details, after which we take care to online tax return filing in most hassle free manner.

Do contact us immediately; we are here to help you in solving all your tax issues!