NSC Documents: For National Savings Certificate (NSC) investors, the central government has made it mandatory to submit two documents or link the account to get the amount deposited in the account.
On March 31, the central government has made it mandatory to link Aadhaar card with the account along with giving the gift of increased interest rates to NSC investors for the April-June 2023 quarter. Whereas, investors have been asked to link PAN as well. The investment tenure in NSC is five years.
The Central Government has announced to increase the interest rate on National Savings Certificate (NSC) by 70 basis points on March 31, 2023, which has benefited investors a lot. After this, now the interest rate on NSC has increased from 7 percent to 7.7 percent, which is much higher than other schemes like PPF etc. The new interest rate on NSC will be applicable on the amount invested anytime between April 1 and June 30, 2023.
Deadline for submission of documents
The Finance Ministry has made it mandatory for investors of small savings schemes to submit Aadhaar. Investors can submit their Aadhaar and PAN card to the accounts office. Apart from this, the investor can also submit both the documents at the post office having the respective account. A six-month deadline has been given for submission of both the documents from April 1, 2023, which will end on September 30, 2023.
What will happen if Aadhaar is not submitted for NSC account
According to the instructions of the Ministry, if Aadhaar is not submitted by 30 September 2023, then the amount deposited in NSC account will be frozen. In this case, the amount of interest payable to the investor will not be deposited in the bank account. Whereas, the investor will not be able to deposit the amount in his NSC account. Apart from this, the maturity amount will not be credited to the bank account of the investor.
Benefits of Investing in NSC Scheme
- National Savings Certificate is operated under NSC Post Office Savings Scheme. To invest in NSC, the customer can open an account in the post office.
- Deduction is allowed on the amount deposited in NSC under section 80C of the Income Tax Act.
- Investors can invest a minimum of Rs 1000 in NAC while there is no limit for the maximum deposit amount.
- The investment tenure in NSC is for 5 years. You can close it prematurely or withdraw the deposit amount prematurely.
