National Savings Certificate or NSC is perhaps one of the most popular schemes under the small savings scheme run by the post office.

Investment under the scheme qualifies for tax benefit under Sec 80C, which thus makes the scheme very popular.

Very few individuals know that these NSC certificates can be transferred from one person to another.

For transfer of accounts linked with these certificates the depositor should apply in a particular form for the purpose, which is available at the post offices.

The application can be given either in transferring office or transferee office.

It's important to remember that a transfer can only be affected after expiry of one year from the date of Certificate.

For the purpose of transfer the authorised Postmaster as specified in the guidelines shall give his consent only if the following conditions are satisfied.

(a) the person who is purchasing is eligible under these rules to purchase certificates. For example, if he is a NRI he not eligible for purchase of NSC.

(b) the transfer is made after the expiry of a period of at least one year from the date of the certificate or where the transfer is sought before the expiry of such period, the transfer falls under any of the following categories, namely:-

(i) transfer to a near relative out of natural love and affection;

It's important to note that transfer is permitted only for the whole amount and not for the part of it. Also read How to transfer a NSC from one person to another?

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