80 c deduction

Invetment in NSC is deductible in income tax...

if we book accrued int than it is taxble in IFOS head and also should deduct from GTI. so there is no effect of accrued int.

but if anyone is  not accounting  interest than he  will pay tax when he will get int on maturity.

yes, Interest income earned from NSC  should be shown in Income from other sources and  as the interest is reinvested till 5 years (maturity ) it will considered in deduction U/s 80 C

When will the NSC matured, Only interest for the particular FY will be considered as income from other sources.

The impact will be nill but it will decrease the max. limit of 80 C.

>> Rajesh

what will be the treatment of interest on maturity, if we don't show the accrued interest as income from other sources and also dont claim deduction u/s 80 C every year ?

at the time of maturity only last year's Interest amount will shown as income from other sources. No deduction for such amount can be allowed u/s 80c.

more ever if you are not showing the accrued interest in each year then you have to show all interest income at the time of maturity of NSC.

Interest during the year of maturity will only be allowed u/s 80C and entire interest will be taxable in the year of maturity.

If every year accrued then income from other sources and 80C benefit.

thanks

Aditya, we need to check once again whether interest during the year of maturity is allowed u/s 80 C since it is not going to be reinvested.

interest in the year of maturity is not allowed as deduction u/s 80C since it is not going to be reinvested.