80 c deduction
This query is : Resolved
10 March 2009
Dear members
My question is regarding whether interest accured on 6yr NSC per annum should be included u/s 80c for claiming tax benefit..
My question is regarding whether interest accured on 6yr NSC per annum should be included u/s 80c for claiming tax benefit..
10 March 2009
yes it is taxable u/h. Income from other sources. so interest is re-invested out of taxable income so allowed as deduction u/s. 80C
10 March 2009
Benefit u/s 80C is not available for the 6th year interest of NSC since it is not reinvested.
10 March 2009
thanx sir, but i ve still some doubt..
suppose Mr X purchased in 2007-08 a NSC of rs 10000 for 6 yr.On certificate a consolidated amount rs 16101/-is written.Now, mr X said that while calulating his taxable income for 2008-09 the interest that is accrue to him after 1 year on NSC should be included in 80c .B'cz it is reinvested..but how can we know how much interest is accrue to him after 1 year b'cz on certificate 16101/-is written which vl b given after 6year..means what vl d procedure while calculating tax of mr X..
suppose Mr X purchased in 2007-08 a NSC of rs 10000 for 6 yr.On certificate a consolidated amount rs 16101/-is written.Now, mr X said that while calulating his taxable income for 2008-09 the interest that is accrue to him after 1 year on NSC should be included in 80c .B'cz it is reinvested..but how can we know how much interest is accrue to him after 1 year b'cz on certificate 16101/-is written which vl b given after 6year..means what vl d procedure while calculating tax of mr X..
10 March 2009
Interest calculation method is available in rule 15(6) of the NSC (V111)issue rules 1989.
For ready reference year wise interest amount is given in the Income tax ready reckoner.
For ready reference year wise interest amount is given in the Income tax ready reckoner.
10 March 2009
I agree with warrier sir.
11 March 2009
Thanx sir means the interest of 1st year will be included in 80c while calculating his salary income...as i have to calculate taxable salary income so plz tell me whether interest will be included in 80 c or not??
11 March 2009
Yes.
11 March 2009
Thanx sir
one more doubt, interest rece on NSC is income from other sources , then as employer point of view it is our responsibility to include interest in his salary income or not? as we have to include his interest in 80 c as u have answered....
one more doubt, interest rece on NSC is income from other sources , then as employer point of view it is our responsibility to include interest in his salary income or not? as we have to include his interest in 80 c as u have answered....
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Under construction property in ITR
- Gift of mutual fund units to daughter
- Not able to file ITR
- Upload Level ValidationITR3Category of Defect B/D
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Building tax payment deduction in rental Income
- PPF interest-As Exempt Income disclosure
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
