Aditi Kaur (Practising CA) 20 March 2009
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Ashish M (Chartered Accountant) 20 March 2009
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.........
Abhinav Agarwal (M.Com C.A SAP Consultant) 20 March 2009
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.
kallu (Software Engineer) 24 October 2010
|Originally posted by : josh|
Does Interest earned on NSC attract income tax ? there is no tax if the interest earned upto Rs 12000 from NSC , is that right ?
Please see /forum/nsc-interest-taxation-69147.asp for discussion of this issue.