19 August 2013
Amounts deposited into this Scheme (NSS '87) were allowed as Deduction u/s 80CCA of the I-T Act 1961 .
Four Persons had deposited amounts into the scheme NSS '87 in the following manner :-
Person YearofDeposit Amount Deposited
A AY 90-91 10,100 AY 91-92 20,000 AY 92-93 20,000
B Same Details as Person A
C AY 91-92 10,100 AY 92-93 40,000
D AY 92-93 20,000
The entire amounts were taken as Deduction from the Total Income of the respective Years in which they were Deposited in case of all the above persons.
All the persons withdrew the entire amount of Total Deposits made by them into their NSS'87 Accounts + Interest accrued till date on the Deposits in AY 14-15 . Further , all of them were alive in the Year of Withdrawal (i.e. In all cases , the account Holder himself/herself was alive when the amount was withdrawn) .
So , how will the Taxability be for all of of the above persons in respect of the amounts withdrawn by them from this scheme in AY 14-15 ?
22 August 2013
The entire amount received along with the interest will be taxable in all the 4 cases. You can show as NSS withdrawals -under Income from Other Sources . .
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