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NSC Calculator

National Savings Certificate maturity with its unusual tax treatment. Interest accrues annually and the first four years of it count as fresh 80C investment, so only the final year is effectively taxed.

Also called: national savings certificate, nsc maturity value.

₹
%
%
Maturity value
₹2,17,355

₹2,17,355 after five years, from 1,50,000 at 7.7%. Interest of ₹67,355 accrues annually, and the first four years of it qualify for 80C as reinvestment. Only the fifth year interest, ₹15,540, is taxed without an offsetting deduction.

Total interest
₹67,355
Fifth year interest
₹15,540
Interest that qualifies for 80C
₹51,815
Value after one year
₹1,61,550
Tax saved on the investment
₹45,000
On the rate
Small savings rates are revised quarterly by the government. Check the current quarter rate before relying on this.
How this is calculated
Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

NSC compounds annually over a fixed five year term. The tax treatment is what makes it distinctive: interest accrues each year and is taxable, but because it is deemed reinvested it also qualifies for deduction under 80C in that year. That offsets the tax for the first four years. The fifth year interest is paid out at maturity rather than reinvested, so it is taxable with nothing to offset it. Anyone already using their full 80C limit elsewhere loses this benefit entirely.

annual compounding over the fixed five year term
r
Annual rate

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

the full 80C limit at 7.7 percent

Amount invested
₹1,50,000
NSC rate
7.7%
Tax slab
30%

Maturity value₹2,17,355

1.5L x 1.077^5

Open this example

a zero rate returns the investment

Amount invested
₹1,50,000
NSC rate
0%
Tax slab
30%

Maturity value₹1,50,000

boundary

Open this example

Method and limits

What it assumes

  • Sufficient headroom in the 80C limit to absorb the reinvested interest.

What it deliberately does not model

  • The reinvestment deduction only helps if your 80C limit is not already exhausted.
  • Available only under the old tax regime.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Is NSC interest taxable?
Yes, each year as it accrues. But the first four years also count as fresh 80C investment, which offsets the tax if you have limit remaining. The fifth year does not.