Computation of interest on NSC and ded u/s 80C?

Originally posted by : kaushal (taxbykk)
	hi all This is an academic question. Pls help me to calculate interest on NSC. X purchases NSCs (VIII issue) on 15th march 2009 for Rs. 10,000 and on l5th March, 2010 Rs. 20,000. State the amount of deduction he can claim under section 80C for for the AY 2010-11. Interest accruing on NSCs of Rs. 100 denomination for first year is Rs. 8.16 and second year, it is Rs. 8.83. Thanks in advance

AY - 2010-11

FY - 2009-10

NSC Purchased:

15.03.2009 (FY 2008-09) = 10,000

15.03.2010 (FY 2009-10) = 20,000

Accrued Interest on NSC

NSC                           2008-09      2009-10

NSC (15.03.09)            ---                 816

NSC (15.03.10)            ---                  ---

Total Deduction u/s 80C for AY 2010-11 = 20,000+816 = 20,816/-

Hi CS K.K. Agarwal Sir..........

Deepak Gupta's Post was Correct but I want to share something more about NSC.

The Assessee can Claim the Deduction u/s 80C for NSC as well as Interest on NSC.

However, the Deduction for Interest on NSC can be claim upto first five(5) year only in the Related F.Y.