NSC interest under 80C

Hello CAclub members,

Want to check on this , can we claim deduction under 80C for the interest accrued from NSC investment , it is allowed or not ? and if yes , is there any upper limit to it ?

thanks

Replies (11)

yes you can claim deduction for interest from NSC.But there is not  any benefit bcoz once you will add interest in your income then you will claim deduction u/s 80c...........

over all limit of 80c is 1 lac

Yes you claim the accrued interest on NSC for first five years under 80C. The limit U/s 80C is 1 lakh.

Yes, I agree with both the guys  Md.Mosharraf Ali Raza  CA JAIMIN TRIVEDI, First you have to declare accrued NSC Interest in 'Income from other sources' Head, then you have to claim deduction the same amount  u/s 80c (upto Rs 1 lac).  the effect will be nullified.

well said by indu  

yes the limit is 100000

 

The interest accrued on NSCs is deemed to be reinvested in NSCs and as such the investment in NSCs is elegible for deduction upto the overall limit of Rs.100000/-

YES,AHUJA SIR IS RIGHT.

Perfect reply by Indu...

Dear all,

How much interest i would have to declare as accured, if I have purchased NSC on 12th march 2009 of Rs. 35,000 for the financial year 2008-09.

Abhishek Jain

1st year  you should not provide any interest.

Reason I dont know.

Yes,The interest accrued on NSCs is deemed to be reinvested in NSCs and as such the investment in NSCs is elegible for deduction upto the overall limit of Rs.100000/-

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