80c
This query is : Resolved
18 August 2010
if i have invested in NSC in july, 2004 then it will matured after six years that is in july 10 now i want to know that interest on NSC for F.Y 2009-10 will be allowed as deduction u/s 80c or not
18 August 2010
Not allowable. Since it is not reinvested in last year.
Actually interest accrued on NSC reinvested every year. So it qualifies for deduction u/s 80 C. Calculation of the interest accrued on NSC's as per following : Annual accrual rate of interest on investment of Rs.100/- is as under and is in proportion for other denominations. 1st year : Rs. 8.16 2nd year : Rs. 8.83 3rd year : Rs.9.55 4th year : Rs.10.33 5th year : Rs.11.17 6th year : Rs.12.08 Interest recd on maturity (last year) will not eligible for deduction u/s 80 C.
Actually interest accrued on NSC reinvested every year. So it qualifies for deduction u/s 80 C. Calculation of the interest accrued on NSC's as per following : Annual accrual rate of interest on investment of Rs.100/- is as under and is in proportion for other denominations. 1st year : Rs. 8.16 2nd year : Rs. 8.83 3rd year : Rs.9.55 4th year : Rs.10.33 5th year : Rs.11.17 6th year : Rs.12.08 Interest recd on maturity (last year) will not eligible for deduction u/s 80 C.
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