10 year term NSCs discontinued

In a recent announcement, the finance ministry has discontinued NSCs with a term of 10 years. NSCs or National Savings Certificate issued by Post Offices, were available for a term of 5 years or 10 years. The 5 year term NSCs can still be purchased.

NSCs offer an attractive rate of interest 8.8% throughout their term. The government has taken cognizance of falling interest rates and protected itself from a commitment over a longer term.

Money invested in NSCs is allowed as a deduction under section 80C. Though the interest is fully taxable, each year’s interest can also be claimed in Section 80C (except the last year). You can read in detail about the tax treatment of NSCs here.

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