{"id":11182,"date":"2019-04-27T08:18:12","date_gmt":"2019-04-27T02:48:12","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=11182"},"modified":"2020-01-02T18:10:15","modified_gmt":"2020-01-02T12:40:15","slug":"nsc-interest","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/nsc-interest\/","title":{"rendered":"NSC Interest Rate 2020"},"content":{"rendered":"\n

What is the interest rate on NSC (National Saving Certificate)<\/strong> for 2020? How and when the interest rates of NSC set?\u00a0 How do we calculate the tax benefit on NSC interest?\u00a0 We try to answer these common queries about NSC in this post.<\/p>\n

NSC is popular tax saving investment<\/span> under section 80C<\/strong>. It has maturity of 5 years and is guaranteed by Government of India. 10 Year NSC has been discontinued since December 20, 2015.<\/em><\/p>\n

How and when does the interest rates change?<\/h2>\n

Starting April 2016, Government of India announces interest rate on small saving schemes including NSC, <\/strong>Senior Citizen Savings Scheme, PPF, Sukanya Samriddhi Account, , Post Office Fixed and Recurring Deposits every quarter<\/strong>. This is done to keep these interest rates in sync with the market rates.<\/p>\n

The good thing about NSC <\/strong>is unlike PPF or Sukanya Samriddhi \u00a0once invested the interest rate remains unchanged over the tenure of the deposit.<\/strong><\/p>\n

The table below shows the interest reset schedule:<\/p>\n

\"Quarterly
Quarterly Interest Reset Schedule for Small Savings <\/strong>Schemes<\/b><\/figcaption><\/figure>\n
\n

Also Read:<\/strong>\u00a0Best Tax Saving Investments u\/s 80C<\/a><\/p>\n<\/blockquote>\n

NSC Interest Rate:<\/h2>\n

NSC interest rates are market linked and are announced every quarter. As of 2020, NSC interest rates are 7.9% (Jan to Mar)<\/strong><\/p>\n

The table below gives the details of NSC interest rates over the years<\/p>\n<\/colgroup>\n\n\n\n\n\n\n
Financial year<\/strong><\/td>\nApr \u2013 Jun<\/strong><\/td>\nJul \u2013 Sep<\/strong><\/td>\nOct \u2013 Dec<\/strong><\/td>\nJan \u2013 Mar<\/strong><\/td>\n<\/tr>\n
2019 \u2013 20<\/strong><\/td>\n8.00%<\/td>\n7.90%<\/td>\n7.90%<\/td>\n7.90%<\/td>\n<\/tr>\n
2018 \u2013 19<\/strong><\/td>\n7.60%<\/td>\n7.60%<\/td>\n8.00%<\/td>\n8.00%<\/td>\n<\/tr>\n
2017 \u2013 18<\/strong><\/td>\n7.90%<\/td>\n7.80%<\/td>\n7.80%<\/td>\n7.60%<\/td>\n<\/tr>\n
2016 \u2013 17<\/strong><\/td>\n8.10%<\/td>\n8.10%<\/td>\n8.00%<\/td>\n8.00%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n

Also Read:<\/strong> All you wanted to know about NSC<\/a><\/p>\n<\/blockquote>\n

\"NSC
NSC Interest Rate<\/strong><\/figcaption><\/figure>\n

Investment Limit for NSC:<\/h2>\n

The minimum investment should be Rs 100.<\/p>\n

There is NO maximum limit for investment in NSC. However the maximum tax exemption is Rs 1.5 Lakh u\/s 80C.<\/p>\n

NSC can be purchased in multiples of Rs 100.<\/p>\n

TDS & Tax on NSC:<\/h2>\n

There is NO TDS on NSC.<\/p>\n

The interest earned is taxed according to marginal income tax rates applicable to tax payer.<\/p>\n

\n

Download:<\/strong> Excel based Income Tax Calculator<\/a><\/p>\n<\/blockquote>\n

Tax Benefit on NSC:<\/h2>\n

You can claim tax deduction up to Rs 1.5 lakh for investment in NSC under Section 80C.<\/strong> Additionally the interest accrued every year on NSC is also considered for tax exemption u\/s 80C.<\/strong><\/p>\n

\n

Download:<\/strong>\u00a0Latest Tax Planning Guide eBook<\/a><\/p>\n<\/blockquote>\n

Here is an example:<\/strong><\/span><\/p>\n

The calculation is done taking interest rate of 8% and compounded annually.\u00a0<\/p>\n

Interest Accrued every year (except last year) is considered as fresh investment and is eligible for tax deduction u\/s 80C. So in the table below, the investor would be eligible for Rs 12,000 (8% x 1,50,000) tax exemption u\/s 80C.<\/p>\n\n\n\n\n\n\n\n\n\n\n
Date<\/strong><\/td>\nEvent<\/strong><\/td>\nTax Benefit u\/s 80C<\/strong><\/td>\n<\/tr>\n
01-Mar-19<\/td>\n1,50,000 (Purchased NSC)<\/td>\n1,50,000<\/td>\n<\/tr>\n
01-Mar-20<\/td>\n\u00a012,000 (Interest Accrued)<\/td>\n12,000<\/td>\n<\/tr>\n
01-Mar-21<\/td>\n\u00a012,960 (Interest Accrued)<\/td>\n12,960<\/td>\n<\/tr>\n
01-Mar-22<\/td>\n\u00a013,997 (Interest Accrued)<\/td>\n13,997<\/td>\n<\/tr>\n
01-Mar-23<\/td>\n\u00a015,117 (Interest Accrued)<\/td>\n15,117<\/td>\n<\/tr>\n
01-Mar-24<\/td>\n\u00a016,326 (Interest Accrued)<\/td>\nNo tax benefit on interest in last year<\/td>\n<\/tr>\n
Payment on Maturity<\/strong><\/td>\n\u00a02,20,399<\/strong><\/td>\n\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

NSC interest rates in 2019 (January to June) is at 8.0%. The interest rates are declared at the beginning of every quarter starting April 2016. The interest accrued is also eligible for tax benefit u\/s 80C<\/p>\n","protected":false},"author":1,"featured_media":11188,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[30,3013,63,6],"tags":[2033,257,3871,2246,3872],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/NSC-Interest-Rate.png",1030,579,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/NSC-Interest-Rate-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/NSC-Interest-Rate-300x169.png",300,169,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/NSC-Interest-Rate-768x432.png",768,432,true],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/NSC-Interest-Rate-1024x576.png",1024,576,true],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/NSC-Interest-Rate.png",1030,579,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/NSC-Interest-Rate.png",1030,579,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/NSC-Interest-Rate.png",120,67,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":2,"uagb_excerpt":"NSC interest rates in 2019 (January to June) is at 8.0%. The interest rates are declared at the beginning of every quarter starting April 2016. The interest accrued is also eligible for tax benefit u\/s 80C","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/11182"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=11182"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/11182\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/11188"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=11182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=11182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=11182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}