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.

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