Nsc
This query is : Resolved
28 March 2016
What is the tax treatment of maturity amount received on nsc and ppf ?
28 March 2016
DEAR
PPF IS EXEMPT FROM TAX ON MATURITY.
aT THE END OF NSC MATURITY PERIOD THERE WILL NOT BE ANY TAX LIABILITY ON PRINCIPAL AMOUNT INVESTED. INTEREST EARNED FROM NSC WILL BE TAXABLE UNDER HEAD INCOME FROM OTHER SOURCES.
PPF IS EXEMPT FROM TAX ON MATURITY.
aT THE END OF NSC MATURITY PERIOD THERE WILL NOT BE ANY TAX LIABILITY ON PRINCIPAL AMOUNT INVESTED. INTEREST EARNED FROM NSC WILL BE TAXABLE UNDER HEAD INCOME FROM OTHER SOURCES.
28 March 2016
Agreed with Expert Ankurji about PPF. I Want to add about NSC that Taxable Interest earned every year is automatically reinvested, and such re-invested interest qualify for tax rebate under section 80C of the Income Tax Act thats why Except Last Year Interest. Taxable interest will be deductible u/s 80C.
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