The National Savings Certificate (NSC) can be en-cashed at the Post Office at which stands registered or it can also be encashed at any other Post Office if the Office-In-Charge of that Post Office is satisfied verification from the office of its registration that the person presenting the Certificate for encashment is entitled to.

At the time of encashment of National Savings Certificate (NSC), you need to have below things

  • Original NSC certificate
  • Proof of Identity (e.g. Valid Indian Passport, Indian Driving License etc.) of the holder.
  • Application or NSC Encashment Form
  • The person entitled to receive the amount due under a Certificate shall, on its encashment, sign on the back thereof in token of having received the payment. If the Certificate is purchased on behalf of a minor who has since attained majority, Certificate shall be signed by such a person himself, but his signature shall be attested either by the person who purchased the Certificate on his behalf or by any person who is known to the Postmaster.

The holder can apply for encashment at any post office that does savings bank work, not necessarily at the post office from where the NSC was purchased and registered (You also need to submit NSC transfer form along with encash application).

If the certificate is presented at a post office other than the one from where it was bought, an application has to be submitted with details like serial number, date of issue, full name, registered and current address.

How to encash National Savings Certificate (NSC) in case of Nomination

If a person dies and is at the time of his death the holder of a National Savings Certificate (NSC) and there is no nomination in force at the time of his death and probate of his will or letters of administration of his estate or a succession certificate granted under the Indian Succession Act, 1925.

In the event of the death of the holder of a certificate in respect of which a nomination is in force, the nominee or nominees shall be entitled at any time before or after the maturity of the certificate to

  1. encash the certificate
  2. Sub-divide the certificate in appropriate denominations in favour of individual nominees or two adult nominees jointly.

The surviving nominee or nominees shall make an application to the Postmaster of the office of registration, supported by proof of death of the holder and of deceased nominee or nominees, if any.

If there are more nominees than one, all the nominees shall give a joint discharge of the certificate at the time of receiving the payment or sub-division.

Income Tax on encashment of National Savings Certificate (NSC)

Interest on National Savings Certificate (NSC) shall be liable to tax under the Income-Tax Act, 1961 (43 of 1961), on the basis of the annual accrual specified in rule 15, but no tax shall be deducted at the time of payment of discharge value.