Interest on nsc
This query is : Resolved
Abhishek Roy Choudhury
(Querist)
15 May 2016
Dear Sir,
An Assesse in every year receives Interest on NSC in his Savings Bank Account. So
whether this Interest on NSC in eligible for deduction u/s. 80C. As it says that NSC interest is taxable. However, as it is a cumulative scheme (e.g. interest is not paid to the investor but instead accumulates in the account), each year’s interest is considered reinvested in the NSC. Since it is deemed reinvested, it qualifies for a fresh deduction under Sec 80C.
Please tell as early as possible. I would be thankful to you.
Thanks,
Abhishek Roy Choudhury.
An Assesse in every year receives Interest on NSC in his Savings Bank Account. So
whether this Interest on NSC in eligible for deduction u/s. 80C. As it says that NSC interest is taxable. However, as it is a cumulative scheme (e.g. interest is not paid to the investor but instead accumulates in the account), each year’s interest is considered reinvested in the NSC. Since it is deemed reinvested, it qualifies for a fresh deduction under Sec 80C.
Please tell as early as possible. I would be thankful to you.
Thanks,
Abhishek Roy Choudhury.
KAVIRAJA ADDANGADI
(Expert)
15 May 2016
Interest earned on NSC is taxable Under the Head Income from other sources, since it is accrued and reinvested same can be considered as saving u/s 80C,
5th year maturity interest income will be taxable same not be considered under 80C due to maturity of NSC.
5th year maturity interest income will be taxable same not be considered under 80C due to maturity of NSC.
Rupesh Jain
(Expert)
16 May 2016
intt. on NSC taxable in maturity year, is reaming year its treat as reinvestment u/s 80-C.
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