NSC INTEREST

it depends on situation to situation means if u have reinvested the intt then obvious  next year  inntt will be on 10800

Firstly intt on NSC will be added under the head other source and deduction will be applicable 10800 u/s 80c because intt on post of office deposit exempt from the consideration of income tax. and intt will be calculated on 10800 or 10000 it will be depend upon the consideration of reinvestment.

dear 

in the income tax act interest on nsc is considered as deemed to be reinvested and therefore deduction u/s 80C is available for both new investment and interest accrued during the year

since interest is considered as deemed to be reinvested in next interest will be caclulated on 10800.

to avoide all such difficulties  use interest table given in ready reckneor.