Treatment of nsc

This query is : Resolved

Share Report Follow Query Ask a Query

Manisha Garg

Manisha Garg (Querist)
Follow

05 August 2012 Is investment in nsc is exemptin the year of investment and what is the treatment of its interest?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

05 August 2012 i) Investment in NSC is covered under the Rs.1 lakh cap of section 80C and accordingly, can claim deduction in the year of investment.
ii) Interest on NSC is taxable and can be offered either year wise or at the time of maturity in lump sum.

SANYAM ARORA

SANYAM ARORA (Expert)
Follow

05 August 2012 Agreed with the reply

Manisha Garg

Manisha Garg (Querist)
Follow

05 August 2012 Thnk B.Chackrapani Warrier sir, but can u plz explain the interest taxability wit the help of an example as mah concept in dis regard is not clear.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

06 August 2012 Further, interest on NSC is also eligible for deduction u/s 80C.

So on one hand it is taxable and on the other hand it is allowed as deduction u/s 80C.

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