Exemption

NOT TAXABLE...

U can claim exemption u/s 80C

this investment will give u minimum returns.. invest in MF ELSS or FD of bank for 5 years or PPF instead.. also exempt u/s 80C

also this view depends on the reason why are u investing.

TC

Surely it is taxable but..............

NSC interest will be taxable under the head `income from other sources' based on the method of the accounting you have adopted. If you are offering income based on the mercantile system of accounting, it will be taxable on accrual. If you are following the cash system of accounting, it will be taxable only on receipt.

Interest accrued on NSC except in the last year will qualify for deduction under Section 80C since under the scheme it automatically gets reinvested and is therefore treated as an investment made which will make you eligible for deduction under Section 80C. In the last year, however, as there will be no reinvestment, the interest will not qualify for deduction under Section 80C.

sourabh is correct.... Which is taxable under the head other sources and we can claim  the same amount as dedcution u/s 80 C... you can also claim deduction, the NSC deposit  U/s 80C in the year which you deposited...

i think interest on ppf is not taxable.

also intrest rate is quite the same as other normal investments these days 7-8% appx.

Thanks

Praveen