Q. Is there a maximum limit on investments in NSS?
No, there is no maximum limit on investments in an NSS account.

Q. What is the tax liability on withdrawal of deposit from an NSS account? Will the deposit or interest withdrawn from the account be treated as income in the year of withdrawal for the purpose of taxation?
The withdrawal of deposits from the account of NSS is not taxable. Subject to deduction under 80L of the Income Tax Act, the interest on the deposit under NSS is taxable on accrual or receipt basis, depending upon the method of accounting used by the assessee.

Q. Is the amount payable to the nominee or the legal heir on the death of the depositor of NSS, subject to tax?
Yes, the nominee/legal heir of the deceased also inherits his/her tax liability.

Q. Can I open an account in the name of my spouse?
No, NSS rules do not permit opening of an account in the name of one's spouse.

Q. Is tax deducted at source, in case of NSS accounts?
No, there is no provision for tax deduction at source, in case of NSS accounts.