Q. What is the primary purpose of the National Savings Certificate (NSC)?
Answer: Income tax savings
Notes: The National Savings Certificate (NSC) is primarily designed for income tax savings and small savings, functioning within the Indian Postal Service's postal savings system. It offers a secure saving option for individuals lacking access to traditional banking. NSC holders benefit from tax deductions under Section 80C of the Income Tax Act, and the certificate can also serve as collateral for loans.

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