NSC Calculator
National Savings Certificate is often filed next to PPF as a tax saving instrument, but only the contribution is deductible, and only under the old regime. The interest is fully taxable at your slab, which puts its real return far closer to a fixed deposit's than to PPF's.
Where it goes
- What's actually left₹1.55 lakh
- Tax paid when you file−₹10,507
- Inflation at 6%−₹52,279
Worth knowing
How is the tax on this worked out?
Your other income puts you in a bracket, and this deposit's interest is stacked on top of it — so it is taxed at 15.6%, cess included. There is no separate lower rate for interest. Because we work from your income rather than a slab you pick, this also accounts for the rebate: below ₹12 lakh of total income the answer is nothing at all.
When is the tax on this actually paid?
Every year as the interest accrues — not at maturity, even though you do not receive a rupee until then. At your slab, ₹10,507 of the ₹67,355 interest goes in tax.
Will the bank deduct TDS?
No — your yearly interest stays under the threshold, so nothing is withheld. That is not the same as tax-free: the full liability is still yours, payable when you file.
Is 7.7% a good rate?
At your slab it is really 6.50% after tax. Against 6% inflation, that is what decides whether this deposit gains or loses purchasing power.
Compared with everything elseShow the tableHide
Over 15 years, Equity mutual fund keeps the most — +5.41% a year in real terms.
₹1.50 lakh a year into each, for 15 years, on ₹15.00 lakh of other income — a 15.6% rate on interest — and 6% inflation. The return is what you actually keep, after tax and after inflation.
| Where | Rate | Tax | You’d have | Real return |
|---|---|---|---|---|
| Equity mutual fund | 12.00% | Capital gains | ₹25.54 lakh | +5.41% |
| PPF | 7.10% | Completely tax-free | ₹16.98 lakh | +1.03% |
| NSC | 7.70% | Taxed at your slab | ₹16.32 lakh | +0.35% |
| Fixed deposit | 7.10% | Taxed at your slab | ₹15.69 lakh | +0.03% |
| Sukanya SamriddhiLocks your money in for 21 years | 8.20% | Completely tax-free | — | — |
Over 15 years, Equity mutual fund keeps the most — +5.41% a year in real terms — which is a different order from the one the headline rates suggest, because tax and lock-in do most of the deciding.
Understanding this calculator
National Savings Certificate sits next to PPF on most tax-saving lists, and the two are taxed very differently. Reading it as a PPF with a shorter lock-in is the mistake this page exists to prevent.
Deductible going in, taxable throughout
The contribution qualifies for a deduction under the old regime — and only the old regime, which matters because most taxpayers are now on the new one, where it buys nothing.
The interest is fully taxable at your slab rate. Unlike PPF, this is not an exempt instrument; it is a taxable deposit with a deduction attached to the contribution.
The reinvestment quirk worth knowing
NSC interest is not paid out annually. It is reinvested into the certificate and paid at maturity — but it is taxed each year as it accrues.
That produces an unusual and genuinely useful effect: because the reinvested interest counts as a fresh contribution, it can itself be claimed under Section 80C in the year it accrues, for every year except the last. Whether that is worth anything depends entirely on whether you have already used the ₹1.5 lakh ceiling elsewhere.
The term is a fixed five years with no partial withdrawal. That makes NSC a reasonable place for money you know you will not need, held by someone on the old regime with 80C headroom remaining — and a poor one for anybody else.
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Tax rules applied as of 2026-Q2, last verified against official sources on 2026-08-23. This product locks your money in for 5 years. This calculator does arithmetic on the figures you enter — it is not investment advice, not a recommendation, and not a forecast. All calculators