interest gain from NSC is taxable or not taxable.
bhismadev pandey (11 Points)
07 July 2017bhismadev pandey (11 Points)
07 July 2017
CA Rashmi Gandhi
(Chartered Accountant)
(86220 Points)
Replied 07 July 2017
Ankit Taprania
(CA FINAL )
(542 Points)
Replied 08 July 2017
Sir , it is my request that before making any investment you should learn about its taxability.
The thing about NSC is that , yes its interest is fully taxable BUT on yearly basis under the head 'income form other sources ' . however the interest is never received by the person until the last year , it gets reinvested in NSC itself which allows you to claim its deduction under 80C of investment in NSC for that year , making it in effect tax free .
If you had showed it in your return on yearly basis and claimed it as deduction , only the the last year's interest would have been liable to tax as it never gets reinvested .
My advice , if it is POSSIBLE revise the last year return and file the current year return by showing only the final year's interest and forget about the rest.
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