NSC

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JYOTHILAKSHMI.T.S

JYOTHILAKSHMI.T.S (Querist)
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27 May 2010 When the matured amount of NSC is re-invested in NSC itself how will be the treatment of the matured amount, interest on NSC,etc.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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27 May 2010 Principal amount received on maturity is not taxable currently.

Interest portion though reinvested will be taxable in the year of receipt if interest not accrued on yearly basis. If interest accrued on yearly basis then only that years interest taxable in that year as already the accrued interest has been taxed in earlier year.

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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27 May 2010 Interest on NSC ia taxable accural basic. Hence at the time of maturuity that Interst for that year will be taxable and you got the deduction u/s 80 C of Total Reinvested Amount.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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27 May 2010 NSC is always made in multiple of Rs.5000. Then how you can reinvested total amount . That amount which you will reinvested in mutiple of 5000. you can get deduction u/s 80 C.

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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27 May 2010 Yes you will also have to invest some funds as the entire proceeds will not be in multiples.

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