banner_ad

Income tax on post office nss87 withdrawal

Tax queries 2076 views 1 replies

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.

Replies (1)

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.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details