This is reg interest treatment on NSC
Interest Accrued on NSC Investments, is considered taxable each year under "Other Sources", but its reinvestment is considered under Chapter VI (ie 80C) and is deducted.
Now at the time of maturity whether the interest received amount is taxable ?
Also, if we consider logic of min 3 year investment lock in period, then what about interest reinvestment on NSC for year no., 6 and 7 where these amounts are received back without lock in period of 3 years ?
Also, if any Loan is taken against NSC, whether there will be any impact on the same ?