NSC interest
This query is : Resolved
CA Rashida
(Querist)
09 December 2010
Hi,
The interest income on NSC for first five years is exempt from tax U/s 80C. If an assessee purchases NSc in the mid of F.Y> like say November .Now in his IT return can he claim accrued interest Of Rs.80.16 on Rs.100 for full year or interest will be calculated proportionately for 4 months?
The interest income on NSC for first five years is exempt from tax U/s 80C. If an assessee purchases NSc in the mid of F.Y> like say November .Now in his IT return can he claim accrued interest Of Rs.80.16 on Rs.100 for full year or interest will be calculated proportionately for 4 months?
CA Sanat Pyne
(Expert)
09 December 2010
INTEREST WILL BE CALCULATED ON YEARLY BASIS.
PLEASE SEE V.K.SINGHANIA'S DIRECT TAX BOOK
PARA NO 235.3
PROBLEM NO 235.3.P1
PLEASE SEE V.K.SINGHANIA'S DIRECT TAX BOOK
PARA NO 235.3
PROBLEM NO 235.3.P1
Bimal Thacker
(Expert)
09 December 2010
1) Interest on NSC is not exempt U/S 80C, but it is reinvestment of interest accrued on NSC is consider as eligible deduction U/S 80C.
2) Interest on NSC accrued on yearly basis So practice is to take income for full year from the next year and claim the same as eligible deduction U/S 80C,
3) As in last year the maturity value is withdrawn and hence no re-investment of accrued interest so duduction on interest U/S 80C in last year not eligible.
2) Interest on NSC accrued on yearly basis So practice is to take income for full year from the next year and claim the same as eligible deduction U/S 80C,
3) As in last year the maturity value is withdrawn and hence no re-investment of accrued interest so duduction on interest U/S 80C in last year not eligible.
Message likes :
1 times
CA Rashida
(Querist)
10 December 2010
So, according to you i should not take any interest in this year but should start showing interest in IT return from next F.Y. i.e, 2011-12??
CA Sanat Pyne
(Expert)
10 December 2010
First year interest should be taken in the F.year 2011-12.
for detail clarification
PLEASE SEE V.K.SINGHANIA'S DIRECT TAX BOOK
PARA NO 235.3
PROBLEM NO 235.3.P1
for detail clarification
PLEASE SEE V.K.SINGHANIA'S DIRECT TAX BOOK
PARA NO 235.3
PROBLEM NO 235.3.P1
Message likes :
1 times
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
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- MSME disclosure and disallowance
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
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
