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Interest on NSC

Glendon Dsilva (34 Points)

06 July 2018

How to record interest on NSC in tax returns ?

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Durgesh Vashisth (Financial Consultant) (252 Points)
Replied 06 July 2018

As this Interest is re-invested in National Savings Certificate which is a specified instrument u/s 80C, a taxpayer can claim this amount of interest as a tax deduction under Section 80C. So, the taxpayer will first have to show this interest earned as an income and then claim this as a deduction under Section 80C. Thanks & Regards Durgesh Vashisth 9899812287

Nitin Gupta (Student CA IPC / IPCC) (193 Points)
Replied 06 July 2018

yes, for every year it was mentioned that in the first and further years, this amount would be interest .

HKB Associates (Accountant) (76 Points)
Replied 06 July 2018

Accrued interest on NSC need to be add every year under income from other sources and same eligible for deduction u/s 80c. But if your 80C investment is already more then 1.5 lk, then accrured interst on NSC is taxable.

Also point to remeber is that last year interst on NSC is not eligible for deduction u/s 80c.

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