Nsc and kvp taxable

Is all whole amount ie the principal and interest is taxable on maturity of KISSAN VIKAS PATRA(KVP) AND NATIONAL SAVING CERTIFICATES(NSC)?
PLEASE GUIDE

 

Replies (1)

Kisan Vikas Patra (KVP):
.
Accrued interest amount is taxable under income from other sources. No other tax benefit is available.
.

National Savings Certificate (NSC):
.
Accrued interest amount is taxable under income from other sources but since it is deemed to have been reinvested, it qualifies for deduction u/s 80C, except for the last year (First include in income from other sources, then claim deduction for the same).
.
Amount paid for purchase of NSC can be claimed as deduction u/s 80C.

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