Nss
This query is : Resolved
06 September 2012
Whether interest accrued on National Savings Scheme is taxable or not
07 September 2012
The interest on National Saving Certificates is taxable. However, the mode of taxation would depend on your accounting method. If you are following accrual system of accounting then you need to offer interest every year on accrual basis. If you are following cash system of accounting then interest can be offered at the time of maturity. I would advice that if it is offered every year then you do not carry forward the burden to the last year. Secondly the accrued interest is treated as fresh investment and qualifies for tax deduction under section 80-C provided it is offered for taxation. You do not enjoy this benefit if interest is offered on maturity since interest is paid out in cash.
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
- ITR 2 Short Term gain & Long term gain
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- Itr 1 processing
- Bank Accounts in Balance Sheet for ITR 3
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
