whether nsc interest is still be allowed as deduction under section 80C?????????is there any amendment in union budget ???/
mukesh sarawagi (ca final) (142 Points)
21 January 2010whether nsc interest is still be allowed as deduction under section 80C?????????is there any amendment in union budget ???/
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 21 January 2010
yes, the NSC interest is still allowed as deduction u/s 80C
C.Balaji
(Learner)
(1867 Points)
Replied 21 January 2010
agree with Fatema...
NSC interest is allowed as ded u/s 80c......
CA Pramod Jain
(manager finance)
(1577 Points)
Replied 21 January 2010
ya it is allowable u/s 80c but it is taxable also under income from other sources
Deepika
(Chartered Accountant)
(238 Points)
Replied 22 January 2010
NSC interest is first included in Gross Total Income under Income from Other Sources and then allowed as deduction u/s.80C
Vikas Goswami
(CA student)
(32 Points)
Replied 22 January 2010
ya it is correct , allowed as deduction u/s 80c
Naresh
(CA Final/ C.W.A Final)
(49 Points)
Replied 22 January 2010
yes int in NSC allowed deduction u/s 80C.But int 12 years NSC is exempt from tax u/s10(15).
Vatsalya Bhardwaj
(Final Student)
(427 Points)
Replied 22 January 2010
| Originally posted by : mukesh sarawagi | ||
 |
whether nsc interest is still be allowed as deduction under section 80C?????????is there any amendment in union budget ???/ |  |
The amount that you invest in National Savings Certificate (NSC) can be included in Sec 80C deductions.
"INTEREST IS NOT ALLOWED AS DEDUCTION UNDER SEC80C"
Vatsalya Bhardwaj
(Final Student)
(427 Points)
Replied 22 January 2010
Tax Implications of investment in N.S.C.s:
• The capital investment in N.S.C.s qualifies for rebate u/s 80C in the first year of investment.
• Thereafter (after completion of one year) for the next 5 years the annually accrued interest on N.S.C.s is eligible for rebate u/s 80C as it is considered reinvested in N.S.C.s
• Also this annually accrued interest is taxable on an accrual basis every year under the head ‘Income from Other Sources’.
• If the accrued interest is not taxed every year on an accrual basis than the entire income becomes taxable during maturity / withdrawal.
Vatsalya Bhardwaj
(Final Student)
(427 Points)
Replied 22 January 2010
The interest on NSC is only eligible for deduction if the interest is reinvested. In the final year (maturity year) as the interest is not re invested again, no deductions allowed
ajay lohiya
(article)
(69 Points)
Replied 22 January 2010
it`s first taxable under other sources thenafter eligiable for dedcution u/s 80c
CA Bikash Biswal
(Chartered Accountant)
(85 Points)
Replied 22 January 2010
"NSC interest is first included in Gross Total Income under Income from Other Sources and then allowed as deduction u/s.80C"
am agree with deepika
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