How to Transfer an NSC to Another Person?

National Savings Certificate (NSC) is one of the most popular Small Savings Schemes (SSS) available in India. Not only they offer high returns but also allow the investor tax benefits under Section 80C of the Income Tax Act.

While a large number of people know about how NSC works, they are not aware of the fact that these certificates are transferable to other people, although under certain conditions.

Conditions Under Which an NSC Transfer is Allowed

An NSC transfer is allowed when it’s transferred from:

• A deceased holder to their legal heir
• NSC certificate holder to the court of law any other people if/when allowed by the court of law
• NSC Joint Holders to the name of the joint holders
• NSC holder to their near relatives such as brother, sister, son, daughter, etc.

The following are some of the key points to remember when pondering over an NSC transfer:

• You can transfer an NSC at any point from the date of issuance to the date of maturity but only once.
• A consent from the post master or the head post master is necessary for the NSC transfer.
• You cannot transfer a portion of the NSC amount. The transfer has to be done in its entirety.
• Once the transfer has been done, the new owner can also transfer the certificate back to the original owner. However, it’s subjected to the same conditions.

How to Transfer an NSC From One Person to Another?

To transfer your NSC to another eligible person, follow these steps:

• Obtain and duly fill the NC 34 form. You can download it here.
• Sign the form and have the transferee sign it as well.
• Present the form and the original NSC certificate to the post office to finish the process.
• The NSC won’t be discharged but rather your name will be rounded and the transferee’s name will be put on the certificate.

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