SAVE YOUR TAX BY BUYING NATIONAL SAVINGS CERTIFICATE (NSC)
People in india do invest in banks and financial institutions. However, new option of investment is available in india, known as the National Savings Certificates(NSC). It is very simple, you need to go to the nearest post office and apply for the NSC.
Moneymindz is having a great team of financial advisors offering advice on NSC in India
Ways To Redeem NSC In India:
ØThe certificate can be redeemed after 5, 6, and 10 years depending on the nature of scheme that you have selected.
ØMust be redeemed at the post office mentioned in the certificate and nowhere else.
ØPolicyholder need to sign on reverse of the certificate, after he/she has received payment.
ØIf certificate is in the name of minor, or a young kid, then NSC, must be signed by the immediate relative of the kid, and attested by relatives/person know to the postmaster.
Premature Encashment of National Savings Certificate:
A National Savings Certificate (NSC) can be prematurely redeemed in certain situations given below as follows:
èBring the original NSC Certificate to post office.
èProof of Identity like Driving Licence, Passport, Voter Id and the Aadhar Card.
èFill up the NSC encashment application form.
èPolicyholder must sign certificate after receiving the amount.
èFrom, the date of purchase, if the NSC is redeemed within one year, then only the face value of certificate is paid.
èIf the NSC is redeemed, after expiry of one year, but before expiry of three years, amount equivalent to face value of the certificate along with simple interest shall be paid.
èIf the NSC is redeemed, after three years, amount paid, including the interest for same.
What To Do If Policyholder Not Present?
There can be various scenarios, where in policyholder will be busy and will not be able to come to the post office. Hence you must follow various steps given below as follows:
èThe policyholder needs to write a letter of authority to bank stating that his/her friend/relative will visit post office with two witnesses.
èPolicyholder will transfer the NSC to the person redeeming on behalf of policyholder using the form NC34.
There is lot of confusion among people to redeem the NSC. You need to follow lot of steps in order to redeem NSC in India.
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