NSC Interest taxability

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This query is : Resolved

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A user invested in National Savings Certificates (NSC) in their name five years ago while a student with no income. Now, upon maturity in FY 2022-23, they've received a significant interest amount. As this is their first year filing taxes, they are seeking advice on whether to declare only the current year's interest or the entire maturity amount. The advice given is to declare only the last year's interest, but a caution is raised about potential queries if previous years' interest was not declared by either the user or their father.

Tarun Valecha

Tarun Valecha (Querist)

22 July 2023 Hi all,

My father invested in NSC in my name 5 years ago when I was a student with no income, so I was not filing return.
Now in FY 2022-23, I have received Interest of 300k on maturity which is reflecting in my AIS and TIS.
I have not shown previous years income and not taken deduction for investment in NSC in previous 4 years as 2022-23 is my first year of filing the return.
Please suggest if I can only show 5th year interest as income or whole 300k will be shown as Income.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 July 2023 You can show only the last year's interest, but if you or your father has not declared the preceding year interest, there may be query for that.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

14 September 2024 Good luck.

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