📜Investments

NSC Calculator

5-year NSC returns with 80C deduction on reinvested interest

₹1.00 L

No maximum limit. ₹1,000 minimum per certificate.

7.7%

Current rate: 7.7% p.a. (Govt announces quarterly)

Income Tax Slab

Investment₹1.00 L
5-Year Maturity₹1.45 L
Total Interest₹44,903
Total Tax (at slab)₹13,471
Post-Tax Maturity₹1.31 L
Total 80C Tax Saved₹40,363

NSC Growth — 5 Years at 7.7%

Year-by-Year Breakdown

YearOpeningInterest80C?
Year 1₹1.00 L₹7,700✓ Yes
Year 2₹1.08 L₹8,293✓ Yes
Year 3₹1.16 L₹8,931✓ Yes
Year 4₹1.25 L₹9,619✓ Yes
Year 5₹1.35 L₹10,360✗ No
Maturity₹44,903

80C Deductions Over 5 Years

Year 0 — Original investment

80C deduction in year of investment

₹1.00 L

Year 1 — Accrued interest reinvested

Deemed reinvested under Sec 80C

₹7,700

Year 2 — Accrued interest reinvested

Deemed reinvested under Sec 80C

₹8,293

Year 3 — Accrued interest reinvested

Deemed reinvested under Sec 80C

₹8,931

Year 4 — Accrued interest reinvested

Deemed reinvested under Sec 80C

₹9,619

NSC Rules & Tips

→ Accrued interest in years 1–4 is deemed reinvested, so it qualifies for 80C deduction each year. Year 5 interest is NOT reinvested → fully taxable at maturity.

→ No maximum investment limit. Multiple certificates can be purchased. Can be used as collateral for loans.

→ Available only for resident Indians (individuals, minors). NRIs cannot invest in NSC.

→ No premature redemption except on death of holder or court order.

FAQ

NSC Calculator — FAQ

Common questions about this calculator

Interest is reinvested for years 1–4 and qualifies for 80C next year. Only Year 5 interest is taxable at maturity.

Calculations are approximate and for educational purposes only. Excludes surcharge for income above ₹50L. Consult a Chartered Accountant for personalised tax advice.