NSC vs KVP vs Tax-saving FD Calculator
Same tax treatment, different 80C eligibility
NSC vs KVP vs Tax-saving FD Calculator
₹
Years
Months
Days
%
%
%
%
%
NSC post-tax maturity
0
KVP post-tax maturity
0
Tax-saving FD post-tax maturity
0
In today's money (inflation-adjusted)
0
real purchasing power after assumed inflation
All three are taxed the same way on interest — at your slab rate
NSC, KVP, and tax-saving FD interest all get added to your total income and taxed at your slab rate every year (no LTCG concession, no indexation benefit like debt mutual funds used to have) — the real differences between them are the Section 80C deduction and the lock-in period, not the tax rate on the gains.
KVP gets no Section 80C deduction at all
Unlike NSC and a 5-year tax-saving FD, a Kisan Vikas Patra investment does NOT qualify for any Section 80C deduction — it's a pure fixed-income instrument with no tax break on the principal, so it only makes sense once your 80C limit is already fully used elsewhere.
NSC's deemed-reinvested interest can itself qualify for 80C
NSC interest is deemed reinvested each year (except the final year) and that reinvested amount can itself be claimed under Section 80C in that year, subject to the overall ₹1.5 lakh cap — a nuance many investors miss when comparing NSC to a plain tax-saving FD.
This assumes annual compounding, your full 80C benefit is usable (subject to the overall ₹1.5 lakh cap across all 80C instruments, not modeled as a separate cap here), and that KVP's stated doubling-period is expressed here as an effective annual rate for comparability. TDS on FD interest (above the threshold) is a collection mechanism, not an extra tax — the final tax liability is still your slab rate, reconciled at return-filing time. Not tax or investment advice.