NSC - Interest earned is tax free or not?

[Kunal]

Hi, Just wanted to know If I invest Rs.100/-. As far as I know, I will be getting 8% interest on NSC. And the term is 6 years and interest will be compounded every 6 months. I am having doubt -
1- Whether the interest earned is tax free or not?
2- Can you please clarify me on that?

3- Is Minimum term of certificate 6 yrs?

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[White Caps]

NSC gives 8% PA compounded twice a year. This means Rs. 100 will give you Rs. 160.1032 at the end of the tenure. You can use this to extrapolate to all denominations!

The formula is: Final value = Principal * ( ( 1 (interest rate / number of times interest is compounded)) ^ ( period in years * number of times interest is compounded))
For example: Final value = 100 * ((1 (0.08 / 2))^(6*2)

[White Caps]

1- Whether the interest earned is tax free or not?
2- Can you please clarify me on that?
3- Is Minimum term of certificate 6 yrs?

- Yes, Income tax relief is also available on the interest earned as per limits fixed vied section 80C.
- Period of maturity of a certificate is six Years.

2- Can you please clarify me on that

I think it is with first query.