Interest on nsc and itr

Dipak Rajkhowa (Engineer) (25 Points)

28 August 2014  

Hi friends, as per my knowledge if the accrued interest from NSC is shown as "Income from other sources" in ITR, it is exempted under 80C since interest earned is reinvested. But 5th year interest is not exempted since it dosen't get reinvested.

Now, at the time of maturity will the Post office deduct tax on interest for all 5 years or only the last year? Do I need to show them the ITRs for these years? Please clarify as I am little confused.