Small Saving Scheme: Overview

Are you looking at some simple tax saving instruments? If so, small saving schemes are an attractive option. Moreover considering the returns it is not a bad investment vehicle either, if you are not too particular about the lack of liquidity of such schemes. These small saving schemes have been time-honored tax saving vehicles, designed to provide safe and attractive investment options to the public, at the same time to mobilize resources for development.

Small Savings Schemes: Instruments

National Savings Certificate
Post Office Recurring Deposits
Post Office Monthly Income Schemes

National Savings Certificate (NSC)

Who is eligible for purchase of National Savings Certificates (NSC)?

Any adult individual can buy NSCs. NSCs can also be bought jointly or by an adult on behalf of a minor. ......

What is rate of interest offered on National Saving Certificates (NSCs)?

A rate of interest of 8.60 - 8.90 per cent compounded half-yearly on NSCs. ......

How can NSCs be encashed at maturity?

The certificate can be encashed at the post office registered or at any other post office if the concerned authority is satisfied with the identity proof of the individual presenting the certificate. ......

Kisan Vikas Patra (KVP)

Can Kisan Vikas Patra (KVP) be encashed only at the post office of issue?

It is easier to encash KVPs at the post office of issue. But, it is not necessary. ......

Can Kisan Vikas Patra be purchased by non-resident Indians?

No, non-resident Indians are not eligible to purchase Kisan Vikas Patra. ......

What are the tax implications on investment in Kisan Vikas Patra?

There are no tax benefits on the KVP or on the interest earned from this instrument. ......