Accrued Interest on NSC VIII Issue

This query is : Resolved

Narpat S Gaur (Querist)
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19 June 2008 Dear Sir,

An assessee purchase NSC VIII issue of Rs 25000 per year. What the accured interest on such investement shall be included in his income from other source?

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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19 June 2008 Interest amount for the NSC Certificate of Rs 1000

Year Amount of Interest
1 Rs 81.60
2 Rs 88.30
3 Rs 95.50
4 Rs 103.30
5 Rs 111.70
6 Rs 120.80

Narpat S Gaur

Narpat S Gaur (Querist)
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20 June 2008 Dear Sir

What the interest income to be include under the head "income from other source" or not ?

Further what the assessee can avail deduction u/s 80C?

CA.Manish Jindal

CA.Manish Jindal (Expert)
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20 June 2008 Int on NSC purchsed on/after 1.3.03 for Rs 100 is to calculated as follows :-
1-Rs 8.16
2- Rs 8.83
3- Rs 9.55
4- Rs 10.33
5-Rs 11.17
6-Rs 12.08

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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26 June 2008 yes, interest first to be included in income from other source and then claim deduction for same amt u/s 80C. so, no tax on interest.