Tax treatment of nsc matured sum
This query is : Resolved
09 March 2012
Dear sir,
i want to ask u whether the proceeds of NSC matured are taxable ? interest on nsc is taxable on accrual basis & get deduction u/s 80 C. but if the assesee has no other income and he has invested some amount in NSC & if he is under basic exemption limit of income tax, consequently not filed income tax return. then what would be the tax treatment at the time of maturity of NSC. whether he should file income tax return & show accrued int. of 6 years collectively or no need to file the same. he is above 60 years of age.
please reply me earliest, m in bit confusion.
thanks
i want to ask u whether the proceeds of NSC matured are taxable ? interest on nsc is taxable on accrual basis & get deduction u/s 80 C. but if the assesee has no other income and he has invested some amount in NSC & if he is under basic exemption limit of income tax, consequently not filed income tax return. then what would be the tax treatment at the time of maturity of NSC. whether he should file income tax return & show accrued int. of 6 years collectively or no need to file the same. he is above 60 years of age.
please reply me earliest, m in bit confusion.
thanks
10 March 2012
Principal portion of the NSC matured is tax free. In the cited issue, if the accrued interest exceeds "the maximum amount not chargeable to tax" ( commonly called basic exemption limit) income tax return has to be filed in the year of withdrawal.
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