NSC Accrued interest

Anil (1638 Points)

16 June 2008  

Under the Income Tax Act Individuals can compute their taxes either on cash basis or on accrual basis.

Still why is it that many people get into the process of computation of accrued interest on their NSC certificates held and take that into account while computing their yearly taxes?

They take accrued interest on NSC under the head - Income from other sources and show the same as deduction u/s 80C.

Is not it simpler to only show the interest earned during the year of maturity of NSC as income from
other sources in the year of maturity of NSC?