Winning Bizness Desk

Mumbai. Last date for the investment ie 31 March to save taxes is fast approaching and therefore, only a few days are left for the financial year 2022-23 to end. If you want to invest to save tax, you can do so till March 31 and if you want more returns on your investment along with saving tax, then you can invest money in the National Savings Certificate (NSC) scheme of the post office. Presently 7% annual interest is being given under this scheme. We are telling you about this scheme.

NSC most sought-after scheme

You can claim tax exemption on whatever money you invest in the National Savings Certificate under section 80C of the Income Tax Act. You can take advantage of tax exemption on this by investing a maximum of Rs 1.5 lakh in NSC in a financial year. In this scheme, accounts can also be opened in the name of children. If the child is below 10 years of age, then the account can be opened on behalf of the parents in his name. At the age of 10 years, the child can operate his account on his own, while when he becomes an adult, he gets full responsibility of the account.

5 years lock-in period

Apart from this, a person of 18 years of age can invest in NSC himself or on behalf of a minor person. This account can also be opened as a joint account in the name of 3 adults. If you want to withdraw your investment then you have to wait for 5 years. It has a lock-in period of 5 years. That is, you will not be able to withdraw your money before 5 years. In this, interest is being received according to the annual interest rate of 7%. In such a situation, according to the Rule of 72, if you invest money in this scheme, then it will take 10 years and 2 months for the money to double. There is a lock-in period of 5 years in this, that means you will not be able to withdraw money for 60 months. That is why this scheme is not suitable for those who want to invest for 1-2 years.