National Savings Scheme

National Savings Scheme (NSS) offers an assured return and tax rebates under Income Tax Act. The rate of interest is 9 per cent per annum, compounded annually.

NSS is available at post offices across India. You can open only one account in a year. There is no prescribed upper limit to the amount you might want to invest in the scheme.

NSS is mostly viewed upon as a tax-saving instrument. It combines growth in money (capital appreciation) with cuts in tax outgo.

Since the NSS has a fixed rate of return, it cannot provide adequate safeguards against high inflation rates, but it helps as an instrument to reduce income tax liability.

22 comments for “National Savings Scheme

  1. Swaminathan Venkataraman
    February 14, 2018 at 4:28 am

    Attention may be drawn to the Government notifications relaxing the conditions for premature closing and early withdrawals from PPF Accounts.That is a scheme under which the depositor, in respect of deposits made, on a year to year basis, enjoys the tax benefit under sec 80 C.

    On the other hand, deposit holders under a similar tax benefit scheme called, NSS 1987, especially of advanced age, have their monies locked up for over two decades now, but with no right to withdraw , without attracting tax. Is this not highly objectionable on the ground of discrimination. Perhaps, therefore, the grievance needs to be taken on at the highest level- may be, with the pM / FM, for a serious consideration and favorable decision.For an early redressal , addressing the matter effectively, through a proper Social Forum – e,g. ‘Localcircles’ may be of help.

  2. Arun Kumar Sen
    December 11, 2017 at 3:30 pm

    I am a 72 years old senior citizen having NSS deposit in GPO New Delhi since 1990.
    How many times personal visit to that GPO New Delhi would be required to transfer my deposit a post office at Mumbai where I am presently staying?
    Whether the transfer of deposit at all possible ON LINE..Long live Digital India…

    • PUNAM SHARMA
      January 21, 2018 at 11:19 am

      Sir I also have the same issue . Waiting for reply for your query .
      All the best .

  3. Arun Kumar Sen
    December 11, 2017 at 3:24 pm

    WHETHER POST OFFICE NSS SCHEME ALSO NEED TO BE AADHAAR LINKED AND THAT TOO IMMEDIATELY ..MEANS BY 31 DECEMBER 2017

  4. pooja
    July 11, 2016 at 11:13 am

    When Nss interest is taxable?If amount is withdrawn after her death wheather at that time interest and principle amount will be taxable?

  5. kamlesh vasavada
    April 30, 2016 at 12:02 pm

    I HAVE N S S A/C TAKEN IN 1992 OPENED FOR INCOME TAX SAVING AND FULL INVESTMENT FOR THRE YEAR WAS DEDUCTIBLE.THIS SCHEME WAS WITHDRAWN SINCE LONG.

    I WANT TO KNOW WHETHER ANY AMOUNT DRAWN NOW IS TAXABLE ?

  6. Mohammed subhan
    March 10, 2016 at 6:39 pm

    Can somebody suggest best saving scheme or monthly pension or any other thing urgently

    • Jeevan Tarun
      March 14, 2016 at 11:23 pm

      Your details are insufficient. Each plan is best, depending on the requirements of the investor. LIC’s Jeevan Shikhar, Post office NSC, PPF are good for safe and secure investments. Mutual funds (ELSS) are good for high returns.

  7. s,b,mangrulkar
    September 9, 2014 at 4:58 am

    I am 60 year old how to withdraw N S S amount without tax deduction.

    s.b. mangrulkar

    • sks
      April 1, 2015 at 1:37 pm

      Yes U can draw the amount with a declaration of Form 15G

  8. anjaneyulu bvsr
    May 29, 2014 at 11:24 am

    please enlighten me about the rate of interest under National Savings Scheme 1987 from the start till 2004. I need to withdraw the fund deposited some 22 years ago.
    thanks
    anjaneyulu

  9. SURESHBABU
    March 19, 2014 at 6:48 am

    I am 28 years old now, suggest me best Savings Scheme with tax Exemption

  10. V.Lakshminarayanan
    December 23, 2013 at 9:52 am

    Sir
    I am having NSS 1987 @ Hosur Post Office. I am 65 yrs old. How to withdraw partial amount & max limit tax free. Pl advice.
    V.Lakshminarayanan

    • N N Bhandarkar
      July 15, 2014 at 4:38 pm

      I am 73 year old how to withdraw N S S amount without tax deduction

  11. SRINIVASAN K.V
    January 18, 2013 at 7:31 pm

    there is form available at post office for transfer of a/c from one post office to another and it can be filled and given at the acccount holding post office and an acknowledgement will be given . this acknowledgement to be shown at the transferred post office after 15 to 30 days and get the pass book .

  12. SRINIVASAN K.V
    January 18, 2013 at 7:26 pm

    NSS was already withdrawn. now only senior citizen savings scheme (SCSS)is available which gives 9.3% interest payable quarterly and investment qualifies for tax rebate

  13. kalyani
    January 15, 2013 at 6:21 am

    how to tranfer from one post office to another post office

    • S. S.Roy
      May 23, 2015 at 4:19 pm

      How to transfer NSS Accounts from one Post Office Office to another Post Office.

      • Vishal Gupta
        March 10, 2016 at 9:55 am

        Getting money back of any kind of post office scheme from post office is an up-hill task. it is my personal experience and advice that never ever invest in post office in future.

        • Jeevan Tarun
          March 14, 2016 at 11:27 pm

          Dear Vishal.
          Nice to see your comments over here. Can you please explain your experience. Might be there would be a chance you got issues, or someone can suggest a solution to hurdles faced by you.

          Regards
          Tarun Bansal – http://tarunbansal.com

        • September 18, 2017 at 12:41 pm

          Hello Sir,

          My father too has had similar experience from transfer from Lucknow to Ghaziabad office. He is not able to withdraw money from his NSS account, more than 20 years old. I want to complain about this process to the suitable authorities.

          Let me know if any one can help here.

      • Nitin Joshi
        August 6, 2017 at 4:08 pm

        I am looking for reply on transfer of NSS account to nearby Post Office.
        Nitin Joshi –

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