Nsc intrest

Is The NSC Intrest is Tax Abel or Not.

Replies (5)

Dear Jatinder, at the end of the year the NSC int get acrrued & not received by us. It is presumed to have been re-invested in NSC.

Therefore, yes it is taxable as interest income but you can claim deduction u/s 80C as invested in NSC.

Hence net effect-non taxable...

But remember, in the last year interest is taxable only for last year as it is not reinvested but received by the person.

yes, nsc intt is taxable under other sources. but since it is automatically reinvested at year end so the same is allowed as exemption under 80C.

yes, nsc intt is taxable under other sources. but since it is automatically reinvested at year end so the same is allowed as exemption under 80C.

Yes, interest from NSC is taxable.

Agreed with all the above views. But one thing i would like to mention that NSC VIII Issue have 5 or 6 years of maturity (i.e. if purchased on or after 1-12-2011 it's 5 years else 6 years) & NSC IX Issue is for 10 years,so no deduction u/s-80C is available for the interest at the end of 5th / 6th year or 10th year, as the case may be, as the matured amount is assumed to be withdrawn & thus not gets re-invested.

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