accrued interest on NSC

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Anil

Anil (Querist)
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15 July 2008 whether accrued intereston NSC is exempt u/s 10
or not?

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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15 July 2008 No, the intt accrued on NSCs is taxable under the head of Income From Other Sources. However, the same is seperately elegible for deduction under section 80C for all the years except the last year.

Anil

Anil (Querist)
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16 July 2008 but u/s 10(15)list of exemptions is given.
under that list Accrued interest on NSC is given as exempt

Anil

Anil (Querist)
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16 July 2008 accrued int is shown as exempt u/s 10(15)

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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17 July 2008 Only interest on notified deposits,bond or certificates are exempt u/s 10(15).

Following National Certificates have been notified to be exempt u/s 10(15)

Post Office National Savings Certificates (12 years/7 years), 7 year National Certificates(II Issue),
7 year National Certificates(II Issue)-Bank Series
Existing NSC(VIII) series is not exempt as such

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