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Updated Feb 16, 2026 11:53 PM IST
National Savings Certificate (NSC) offers guaranteed returns with tax benefits. Here’s how Rs 1.5 lakh invested for 5 years grows, along with interest rate details, eligibility rules and maturity benefits.
Highlights
- NSC offers 7.7 per cent annual interest, compounded yearly, with a 5-year lock-in period.
- Investment of Rs 1.5 lakh can grow to around Rs 2.2 lakh at maturity.
- Eligible for tax deduction under Section 80C, making it useful for tax planning.
India’s tax system is preparing for a major administrative change as the new Income-tax Act, 2025 is scheduled to take effect from April 1, 2026. One of the most noticeable changes for taxpayers will be the renumbering of several familiar income-tax forms, including widely used documents such as Form 16 and Form 26AS.
For years, salaried employees and pensioners have relied on these form numbers for tax filing, salary documentation and compliance. With the introduction of the new framework, these forms will continue to serve similar purposes but under different numerical identifiers. For instance, Form 16, the TDS certificate issued by employers, is expected to be known as Form 130, while Form 26AS, the annual tax credit statement, is likely to be referred to as Form 168.
Why are the forms being renamed?
The renumbering is part of a broader attempt to simplify and reorganise the structure of tax laws. Experts say the objective is not to change the nature of compliance but to align documentation with the redesigned structure of the new Act. The government aims to create a more streamlined and future-ready tax framework that is easier to navigate in the long run.
Tax professionals explain that while the change may look significant on paper, taxpayers will continue to submit similar details and follow familiar processes. The primary difference will be the updated references and numbering system used in communication, notices and official documentation.
Transition phase likely in the initial years
A transition period is expected once the new law comes into force. During this phase, both old and new form numbers may coexist depending on the relevant tax year. This means that tax matters related to earlier financial years are expected to continue under the existing Income-tax Act, 1961, using traditional form names such as Form 16 and Form 26AS.
Only compliances related to tax years beginning on or after April 1, 2026 are likely to fully adopt the new numbering system. This approach is intended to prevent confusion and ensure continuity for taxpayers and employers.
What taxpayers should watch out for
The final rules are currently in draft form and await approval before implementation. Officials have indicated that revised forms, utilities and frequently asked questions will be released ahead of the rollout to help taxpayers understand the changes.
Experts believe that while some short-term confusion is possible, especially among salaried individuals accustomed to older terminology, digital systems, portal updates and clear communication from authorities should make the adjustment smoother over time.
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