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.

26 comments for “National Savings Scheme

Leave a Reply to Nitin JoshiCancel reply