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Follow these steps to transfer you NSC to another person

National Savings Certificates (NSC) helps save tax under Section 80C. Amount invested in NSC up to Rs 1.50 lakh in a year is deducted from your taxable income. Interest on NSE accrues annually but it is payable
only on maturity. At present, the interest rate provided on NSC is 6.8%. The NSC VIII Issue has a five-year period of maturity.

National Savings Certificates can be transferred only once during its entire period. However, there are certain conditions that need to be fulfilled.


-NSC certificates can be transferred only after one year from the date of issue. However, this condition is not valid if the transfer is made to a near relative, legal heir of a deceased holder or the transfer is done on orders of the court. In case of joint holders, if one holder dies then for transferring the certificate to the surviving holders this condition is not applicable.

-The applicant needs to fill up Form NC 34 to transfer savings certificates from one person to another, except as a pledgee.

-Details such as name of the transferer, name of transferee, serial numbers of the certificates, denomination and date of issue should be mentioned in the form. The form needs to be signed by the holder. In case of a minor, the guardian will sign the form.

-Also, the transferee must provide a signed declaration in the prescribed format to abide by the rules pertaining to issue of NSC. The transferee also needs to furnish KYC documents such as photograph, addresses and identification proof and submit the KYC form.

How the transfer is done

In the transfer process, the old certificate is not discharged but name of the old holder is rounded and name of the new holder is written on the old certificate. It is then signed by the authorised postmaster. The postmaster’s stamp and date stamp of the post office is also affixed.

Worth mentioning here is that a separate application is required for each series of certificate and transfer can be done only for the whole amount of the certificate and not partially.


The post office may charge a fee as applicable to process the transfer request.


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