NSC Calculator

National Savings Certificate (NSC) is a government-backed fixed income savings scheme available at all post offices in India. It offers a guaranteed return with a fixed maturity period of 5 years and qualifies for tax deduction under Section 80C of the Income Tax Act.

NSC is a popular choice among conservative investors looking for a safe, fixed-return investment with tax benefits. It is backed by the sovereign guarantee of the Government of India.

• Maturity Period: 5 years (fixed)
• Interest Rate: Set by the government quarterly (currently around 7.7% p.a.)
• Minimum Investment: ₹1,000 with no maximum limit
• Compounding: Interest is compounded annually but paid only at maturity
• Tax Benefit: Investment qualifies for Section 80C deduction; accrued interest is deemed reinvested and also qualifies for 80C in years 1-4

NSC interest is compounded annually:

Maturity Value = P × (1 + r)^5

• P = Principal investment amount
• r = Annual interest rate

A unique tax feature of NSC is that the accrued interest for years 1-4 is considered reinvested and qualifies for fresh Section 80C deduction each year. Only the final year's interest is taxable income (unless it also fits within your 80C limit).

• Step 1: Enter the principal investment amount
• Step 2: Input the current NSC interest rate
• Step 3: View the year-by-year interest accrual and final maturity amount
• Step 4: Check the Section 80C benefit breakdown for each year