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Nsc and kvp taxable

Tax queries 1487 views 1 replies

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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