15 May 2016
Dear Sir, An Assesse in every year receives Interest on NSC in his Savings Bank Account. So whether this Interest on NSC in eligible for deduction u/s. 80C. As it says that NSC interest is taxable. However, as it is a cumulative scheme (e.g. interest is not paid to the investor but instead accumulates in the account), each year’s interest is considered reinvested in the NSC. Since it is deemed reinvested, it qualifies for a fresh deduction under Sec 80C.
Please tell as early as possible. I would be thankful to you.
15 May 2016
Interest received is treated income accrued income and treated income from other sources, since same will be reinvested same can be treated savings falls under 80C, In last year interest income charged taxable Under income from other sources but same is not reinvested due to maturity not eligible for deduction under 80C.
16 May 2016
intt. on NSC is taxable under income from other sources and then intvestment u/s 80C till the maturity year. and in maturity years its consider under the income head but not take under u/s 80C, due to this maturity year of NSC.
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