The National Savings certificate (NSCs) are one of the sought-after small savings scheme in India opted by millions of investors in India. The National Savings Certificates offer various advantages such as guaranteed returns, no cap on investment, regular payouts and easy accessibility among others. Also, the interest income up to Rs. 1 lakh is exempt from tax under section 80C of the IT Act, 1961. NSCs are issued at any head post office across the country. NSC is, therefore, considered one of the best retirement planning options most suitable for government employees and businessmen.
The maturity proceeds can be encashed upon completion of 5 years for NSC VIII and 10 years for NSC IX. If an investor wishes to encash a certificate at the end of its maturity period, he or she has to submit the required forms to the post office where the certificate is registered in order to receive the maturity proceeds. It is important to note that NSC accounts can be transferred from one post office to another provided they have not reached maturity. In many cases, an individual may shift his or her residence, in which case, approaching the old post office may prove to be both inconvenient and time-consuming. It is, therefore, easier to transfer the existing NSC account to a post office which is close to the new residence of an investor.
NSC Transfer Rules
A certificate may be transferred from one post office to another by an account holder after submission of the required documents in the prescribed format. It is important to note that the postmaster can approve a transfer for various reasons as listed below:
- Account holder to a court
- Transfer of the account of a deceased holder to heir
- Joint holders to one of the joint holders
- Single holder to joint holders
NSC Transfer process
An account holder wishes to transfer his account to another post office has to take the following measures
- Form NC- 32
An investor has to fill out form NC -32 to ensure transfer of a National Savings Certificate from one post office to another. An investor has to click the link below to access and download NC-32
An investor has to fill in all the required details to ensure a smooth transfer such as date of issue, identity slip, denomination and information related to the issuing office among others. An investor should include details related to issue of duplicates as well.
Form NC-32 should be duly signed by the certificate/account holders. The guardian of a minor must sign the certificate.
The postmaster of the post office where the certificate was originally registered will carefully examine all the information provided and verify the details. The form will then be sent to the post office where the investor wants to transfer his account for completing the process.
An investor should follow the aforementioned procedure to ensure a smooth transfer of his account to the post office of his or her choice. It is important to note that details related to nomination listed in the original application should be clearly mentioned in form NC-32 as well and duly signed by the account holder.
Important NSC Related Reads
- Documents Required for National Savings Certificate
- How to Calculate NSC Interest
- Loan Against National Savings Certificates
- National Savings Certificate Maturity
- National Savings Certificates Tax Benefits
- NSC Application Form from Post Office
- NSC Post Office Interest Rate
- NSC Post Office Saving Scheme
- NSC Rules and Guidelines
- Know About NSC Transfer Online
- National Savings Certificate Withdrawal Rules
- NSC vs FD
- NSC vs KVP
- NSC vs ELSS
- How to Use NSC as Security for Your Loans