Nsc taxability at maturity
This query is : Resolved
18 April 2012
Is NSC whole amount received at maturity is taxable or only the interest received is taxable?
18 April 2012
Dear Salil,
Interest on NSC is only taxable and not the whole maturity amount
Since NSC is for 6 years
every year accrued interest on the NSC is taxable as per the NSC table but the same interest is also allowed u/s 80C as deduction (Subject to 1 Lakh limit) since interest earned is reinvested
but 6th year interest is not allowed as deduction since it dosenot get reinvested
Interest on NSC is only taxable and not the whole maturity amount
Since NSC is for 6 years
every year accrued interest on the NSC is taxable as per the NSC table but the same interest is also allowed u/s 80C as deduction (Subject to 1 Lakh limit) since interest earned is reinvested
but 6th year interest is not allowed as deduction since it dosenot get reinvested
Message likes :
4 times
20 April 2012
Yes Sameer is correct and spelling out the provisions which are applicable to NSC. I Agree with him
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Value of property in capital gain
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
