Taxability for NSS 87 ?

This query is : Open

Jignesh Desai (Querist)
Follow

14 October 2010 How exactly is the Taxability for NSS 87 ? I think I am holding units of this Scheme since 15-20 year or maybe even more . Is there any seperate treatment for the Principal Amount & Interest earned ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

15 October 2010 Deduction for the amount deposited in NSS 87 was allowed under section 80CCA of the Income tax Act 1961. Deduction was restricted to 50 % of the amount of deposit subject to a ceiling of Rs.20,000/-. Though the scheme and tax benefit referred above is not in force right now, 50% of the amount withdrawn and 50 % of the interest is taxable in the year of withdrawal.

Message likes : 1 times

CA.Nikhil Gupta

CA.Nikhil Gupta (Expert)
Follow

14 May 2013 One of my client had mistakenly opened 2 accounts under NSS 87 scheme and claimed exemption also during 1990-1992. Now when he went to withdrew amount from PO, he was tole he can not have multiple accounts under this scheme. What recourse shall we take now to avoid tax and also withdraw the amount which is approx 3 lacs

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