Tax on maturity of NSC

This query is : Resolved

karthika (Querist)
Follow

22 September 2022 My father has invested in few NSC which will be maturing this year and next year . What is the tax implications on maturity? Can someone pls help out

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

22 September 2022 Generally, the last one year's interest amount is to be offered for assessment; provided the interest of earlier years was offered for assessment in respective ass. years.

karthika

karthika (Querist)
Follow

22 September 2022 I don’t think the interst of previous years was shown , what can be done now . Principal is not charged to tax right ? Now the entire interest for 5 yrs need to taxed or just the last year . Also my dad is a senior citizen

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

22 September 2022 Here, check if the returns were filed or not?
If yes, then the whole 5 years accrued interest would be taxable. Principal amount is not taxable.

karthika

karthika (Querist)
Follow

22 September 2022 Yes since he was employed , returns were filed correctly. The nsc was shown in 80c , but the interst was not accounted , since was not received and shall be received on maturity , he forgot to show in return

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

22 September 2022 So, declare the total interest for assessment relevant to its year of maturity.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now