CCI Online Learning
50% OFF in CA/CS/CMA Subjects
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Does Interest earned on NSC attract income tax ?


josh (IT)     19 March 2009

josh
IT 
 247 points

| My Other Post

Hello,

Does Interest earned on NSC attract income tax ? there is no tax if the interest earned upto Rs 12000 from NSC , is that right ?

 

Thanks

josh

 

avater

Aditi Kaur (Practising CA)    20 March 2009

CCI Online Learning offers a library of courses for CA/CS/CMA Aspirants from the best faculties in India. Our top notch courses aim to make your journey from a student to a professional, a successful one. To promise a successful career as a professional CCI Online Learning also offers programs like Financial Modeling, MS Excel, IFRS/IND AS Certification Courses that will help you take your career to the next level. Check out the free demo videos here https://www.caclubindia.com/coaching/


avater

Ashish M (Chartered Accountant)     20 March 2009

Ashish M
Chartered Accountant 
 202 likes  2726 points

View Profile | My Other Post

 

the intt accrued on NSCs is taxable under the head of Income From Other Sources and simulteneously the same is elegible for deduction under section 80C for all the years except the last year.

As for exemption under Sec. 10(15), Only interest on notified deposits,bond or certificates are exempt u/s 10(15).

Following National Certificates have been notified to be exempt u/s 10(15)

Post Office National Savings Certificates (12 years/7 years), 7 year National Certificates(II Issue), 7 year National Certificates(II Issue)-Bank Series

Existing NSC(VIII) series is not exempt.........

avater

Abhinav Agarwal (M.Com C.A SAP Consultant)     20 March 2009

Abhinav Agarwal
M.Com C.A SAP Consultant 
 13 likes  814 points

View Profile | My Other Post

I want to add one point:

Accrude interest is eligible for deduction U/s 80C, but generally we invest full amount to 1 Lacs Rs. in some bonds or MF or PPF's. Thus in that case, that interest will be taxable as the limit of 80C is upto 100000/- only. Thus we should invest only as required considering such interest also.

avater

Shammi_Vision (Tax Consultants)     01 April 2009

Shammi_Vision
Tax Consultants 
 5 likes  283 points

View Profile | My Other Post

yes interst eare is not taxable it is first included in total income after that deduted from GTI

sanjay (;l;klkjjhhh)     01 April 2009

sanjay
;l;klkjjhhh 
 22 points

View Profile | My Other Post

Originally posted by :josh
" Hello,
Does Interest earned on NSC attract income tax ? there is no tax if the interest earned upto Rs 12000 from NSC , is that right ?
 
Thanks
josh
 
"


 

avater

C.A. M.Com. Suhas A. Nagpure (CA)     01 April 2009

C.A. M.Com. Suhas A. Nagpure
CA 
 42 likes  1175 points

View Profile | My Other Post

1st Interest earned on NSC is included in Total Income then it deducted u/s 80c. If your 80c limite of Rs. 1,00,000/-  is full then it is taxable.

kallu (Software Engineer)     24 October 2010

kallu
Software Engineer 
 96 points

View Profile | My Other Post

Originally posted by : josh
Hello,
Does Interest earned on NSC attract income tax ? there is no tax if the interest earned upto Rs 12000 from NSC , is that right ?
 
Thanks
josh
 

Please see /forum/nsc-interest-taxation-69147.asp for discussion of this issue.

avater

Mohammad Asif (chartered accountant)     24 October 2010

Mohammad Asif
chartered accountant 
 16 likes  191 points

View Profile | My Other Post

interest on nsc is first included in income from other sources and then subtracted from gti under chapter VI-A (80C)

 

 

avater

dinesh (B.com,CS student)     25 October 2010

dinesh
B.com CS student 
 9 likes  169 points

View Profile | My Other Post

It is first included in GTI and then u get deduction U/s 80C


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  



Related Threads


Loading

Popular Discussion


view more »



Trending Tags
GST Live Class    |    x