NSC
This query is : Resolved
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.
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.
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.
Message likes :
1 times
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.
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.
Message likes :
1 times
27 May 2010
Yes you will also have to invest some funds as the entire proceeds will not be in multiples.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- Technical Glitch in ITR-4 Online Form (AY 2026-27): Sec 44AE Partner Remuneration not mapping to E8
- Residential status of non resident
- NRI INSURANCE ADVISOR
- Reporting in TDS return
- Loss of interest in PF transfer from EPFO to Trust
- CASH GIFT FROM BLOOD RELATIVE
- TDS offline utility
- Due Date Clarity
- Missed TDS
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
