Respected Sir/Madam,
My mother had NSS 87 account in post office that was closed in Dec-17. Form 15H was submitted then at the time of closure so now tax is deducted at source. There's no entry under Form26AS as well.
What I am not sure about is, Is entire withdrawal amount taxable or only the Interest component?
Also should this income be reflecting under Income From Other Sources in IT Returns?
Thanks and kind regards.
NSS being a Post Office Savings Bank scheme had maturity of 4 years and interest rate was similar to that of NSC. Interest from NSS was tax exempt and the annual NSS deposit itself could be claimed for income tax deduction under section 88. However since its discontinuation payments received are taxable at the rate of 20% and TDS is applicable on NSS.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
View Details
CAclubindia
