NSC (National Savings Certificate and KVP i.e Kisan Vikas Patra interest calculation is an annual ritual for many people who have to file return of income and show the accrued interest in these saving instruments .National Saving Certificate (VIII) is issued for 6 years. Premature withdrawl is not allowed.No TDS at the time of encashment.Can be purchased on Minor’s name , but an NRI is not eligible to purchase NSC.It is available in denomination of Rs100,Rs500,Rs 1000, Rs 5000 & Rs 10,000.
Revision of Interest on NSC
The interest rate for NSC was revised with effect from 01/04/2012 . An interest rate of 8.6 % per annum paybale on maturity for 5 year NSC where as for 10 year NSC IX issue , rate is revised to 8.9 % per annum , compounded half yearly.
Chart for Interest on NSC
|Accrued Interest on NSC of Rs 100|
|Year of Accrual||If purchased on or after 1/3/2001 but before 1/3/2002||If purchased on or after 1/3/2002 but before 1/3/2003||If purchased on or after 1/3/2003|
Accrued Interest Chart for KVP
Kisan Vikas Patra or KVP doubles your money in 8 years & 7 months. No TDS on interest. Interest paid only on maturity.
|Accrued Interest On Kisan Vikas Patra For Rs 1000|
|Period from the date of certificate to the date of its encashment||Purchased between
15/1/2000 to 28/2/2001
1/3/2001 to 28/2/2002
1/3/2002 to 28/2/2003
|Purchased from 1/3/2003|
|1st year||N. A||N. A||N. A||N. A|
|2nd year||N.A||N. A||N. A||N. A|
|2 Yrs & 6 months||1246||1209||1195||1170.51|
|3 years & 6 months||1407||1327||1305||1267.19|
|4 years & 6 months||1585||1470||1439||1355.9|
|5 years & 6 months||1779||1644||1602||1488.49|
|6 years & 6 months||2000||1857||1800||1649.13|
|7 years & 3 months||2000||—–||——-|
|7 years & 6 months||—-||1781.06|
|7 years & 8 months||2000||—–|
|8 years or more but less than 8 yrs 7 months||—-||1850.93|
|8 years & 7 months||—-||2000|
So , NSC & KVP interest can now be easily computed !