National Savings Certificates NSC: Today is Prime Minister Narendra Modi’s birthday (PM Modi Birthday). Today he turned 74 years old. By taking oath as PM for the third consecutive time in June this year, he equaled former Prime Minister Jawaharlal Nehru. On the occasion of completion of the first 100 days of the third term of the Narendra Modi government, Union Home Minister Amit Shah said that today is a very auspicious day because today is the birthday of our Prime Minister Narendra Modi. On the special occasion of his birthday, today we will introduce you to PM Modi’s financial planning. Along with this, we will also know which investment option he trusts the most.
According to the affidavit given to the Election Commission during the 2024 Lok Sabha elections, 98 percent of PM Modi’s income is deposited in bank fixed deposits and post office schemes. PM Modi has invested Rs 2,85,60,338 in bank FD and Rs 9,12,398 in post office National Savings Certificate (NSC) (PM Narendra Modi Investment). According to financial planning, PM Modi is a safe investor. Actually, bank FD and post office schemes are the first preferred option of investors who do not take risk in their savings. On the occasion of PM Modi’s birthday, you can have a look at bank FD and NSC here.
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Highest investment in bank FD
PM Narendra Modi trusts bank fixed deposits the most. According to the affidavit given to the Election Commission, he has invested Rs 2,85,60,338 in bank FDs.
What is a Bank FD?
Bank FD is considered a safe investment option. It is included in the investment portfolio of most people. Bank FD is safe as well as guaranteed returns. These days many banks are offering better returns to investors. However, compared to the big private and government banks, small finance banks are giving good interest on their FD schemes.
Banks allow investors to make FDs with tenures ranging from 7 days to 10 years. If we talk about the interest rate according to the tenure, then common people are currently getting 5 to 9 percent interest on 1 year FD. Banks usually give 0.5 percent or more interest to senior citizens (above 60 years) and super senior citizens (above 80 years) as compared to common people. Apart from this, investors also get tax benefits on 5-year FDs. The special thing is that along with guaranteed returns on bank FD, an insurance cover of up to Rs 5 lakh is available from the government organization DICGC.
Apart from bank FD, Narendra Modi also likes National Savings Certificate (NSC) included in the Post Office Small Savings Scheme for investment. He has invested Rs 9,12,398 in this scheme. NSC is a post office scheme. You can read the details of this government scheme in detail here.
What is National Savings Certificate?
National Saving Certificate is a government scheme. This post office scheme guarantees returns. It is a fixed income investment option that attracts investors who do not want to take any market risk. The maturity period of NSC scheme is 5 years. This five-year government scheme can be started in post offices across the country, in which an account can be opened with a minimum of Rs 1000. There is no limit for maximum deposit. However, if inflation is also taken into account, then the amount received on maturity hardly beats inflation. At the same time, tax is also levied on the interest income in this.
How much interest is being received (Interest Rate in NSC)
According to India Post, the 5-year National Savings Certificate Scheme is getting an annual compounding interest of 7.7 percent. In this scheme, interest is compounded annually and is payable on maturity. You cannot renew this scheme on maturity after 5 years. To continue investing in NSC after maturity, you will have to buy a new NSC certificate with the applicable interest rate.
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What is the value of the certificate
In NSC, certificates of 100, 500, 1000, 5000, 10,000 or more are available. There is no limit on investing in it. That means you can buy any number of certificates.
How much profit will you get by investing in NSC in 5 years
If an investor invests money in the Post Office NSC scheme, then how much profit will he get on maturity, you can see the complete calculation here.
Deposit: Rs 10 lakh
Interest rate: 7.7% compounded annually
Tenure: 5 years
Amount on maturity: Rs 14,49,034
Interest benefit: Rs 4,49,034
Interest earned is not tax free (Tax Rules in NSC)
Investing in National Savings Certificate provides tax exemption under Section 80C of the Income Tax Act. However, this exemption is available only on investments up to Rs 1.50 lakh. For the first 4 years, the interest earned from NSC is reinvested, hence tax exemption is given. But after completion of 5 years of NSC, it cannot be reinvested, hence the interest earned is taxed as per the tax slab rate. TDS is not deducted on the interest amount.
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Do this work while filing return
The principal amount invested in NSC is received after 5 years along with the interest. CBDT rules say that it is necessary to show the interest income of NSC in the ITR of every year. So keep this in mind while filing tax returns. Suppose you have invested Rs 1 lakh in NSC and are getting interest at the rate of 7.7 percent, then it will be necessary to show the income of Rs 7700 every year in ITR.
