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
CA JAIMIN TRIVEDI
(C.A.)
(308 Points)
Replied 02 April 2009
Yes you claim the accrued interest on NSC for first five years under 80C. The limit U/s 80C is 1 lakh.
Indudhar
(Tax Advocate)
(427 Points)
Replied 03 April 2009
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.
CMA KNVV Sri Vidya - Sri Kanth
(C.A.Final (New) ICWAI FINAL (New))
(11269 Points)
Replied 23 April 2009
well said by indu
CA RAMESH KUMAR AHUJA
(CA, DISA, LLB)
(5452 Points)
Replied 24 April 2009
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/-
ABHISHEK JAIN
(SERVICE)
(35 Points)
Replied 17 July 2009
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
Manish Tiwari
(Accountant)
(22 Points)
Replied 03 April 2012
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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