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interest gain from NSC is taxable or not taxable.

Others 603 views 5 replies
The salary earned from my job is come under taxable head after deduction under chapter VI A. Again this year some National Saving Certificate (five year) are mature.I like to know whether the interest gain from NSC is add with my taxable salary or not. Please guide me.
Replies (5)

Yes NSC interest is fully taxable.

Yes same will be added in your income..

Sir , it is my request that before making any investment you should learn about its taxability.

The thing about NSC is that , yes its interest is fully taxable BUT on yearly basis under the head 'income form other sources ' . however the interest is never received by the person until the last year , it gets reinvested in NSC itself which allows you to claim its deduction under 80C of investment in NSC for that year , making it in effect tax free .

If you had showed it in your return on yearly basis and claimed it as deduction , only the the last year's interest would have been liable to tax  as it never gets reinvested . 

My advice , if it is POSSIBLE revise the last year return and file the current year return by showing only the final year's interest  and forget about the rest. 

 

Yes it is taxable

Thanks for guide.


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