INCOME TAX NSC CALCULATION

This discussion clarifies how to handle the maturity of a National Savings Certificate (NSC) purchased in FY 2016-17, maturing in FY 2020-21, for income tax return filing. The accrued interest over the five years is taxable in the year of maturity (FY 2020-21). While the initial purchase amount may have been claimed under Section 80C, the accumulated interest needs to be reported as income for the assessment year 2021-22.