nsc interest

Tax queries 1532 views 16 replies

whether nsc interest is still be allowed as deduction under section 80C?????????is there any amendment in union budget ???/

Replies (16)

yes, the NSC interest is still allowed as deduction u/s 80C

agree with Fatema...

NSC interest is allowed as ded u/s 80c......

agree with both above

ya it is allowable u/s 80c but it is taxable also under income from other sources

NSC interest is first included in Gross Total Income under Income from Other Sources and then allowed as deduction u/s.80C

 ya it is correct , allowed as deduction u/s 80c

yes int in NSC allowed deduction u/s 80C.But int 12 years NSC is exempt from tax u/s10(15). 

allowed.........................

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"

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.

 

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

it`s first taxable under other sources thenafter eligiable for dedcution u/s 80c

"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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