How to treat NSC income

Interest income on NSC is Demmed to be reinvested for first 5 years. Hance the interest amount of 6th may be taxed.

Dear Dr. Jones,

Income of interest can be disclosed either on receipt basis or accrual basis.

If u have shown the income every year on accrual in ur return then only remaining amount is the income of the year in which NSC is matured.

If u have not shown any income ealier then entire Rs. 18,000 will be treated as Interest income of the year of maturity..