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National Savings Scheme (NSS)
National Savings Scheme (NSS) is one of the small savings schemes of India Post. National Savings Scheme, 1987 was discontinued in 1992 after which National Savings Scheme, 1992 was introduced. NSS, 1992 also was discontinued in 2002.
NSS being a Post Office Savings Bank scheme had maturity of 4 years and interest rate was similar to that of NSC. Interest from NSS was tax exempt and the annual NSS deposit itself could be claimed for income tax deduction under section 88. However since its discontinuation payments received are taxable at the rate of 20% and TDS is applicable on NSS.