Tax to be paid on maturity
This query is : Resolved
03 March 2013
my wife was a bank employee and had purchased nsc adding me as a joint holder in 2007. she died in november last year. i being a joint holder encashed the certificate in february 2013. do i pay tax on the maturity value.
Santosh Mishra
(Expert)
03 March 2013
Obviously taxes are not applicable on entire maturity value payable either to the joint holder or survivors. Only we need to spot tax treatment of interest income.
Interests earned during earlier years are deemed as reinvested in NSC and qualify for exemption u/s 80C in respective previous year provided that same have been declared as income under the head Income from other sources.
Interest earned during final year of NSC is always taxable.
Interests earned during earlier years are deemed as reinvested in NSC and qualify for exemption u/s 80C in respective previous year provided that same have been declared as income under the head Income from other sources.
Interest earned during final year of NSC is always taxable.
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