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NSC Investment u/s 80c

Tax queries 3026 views 10 replies

Is amount invested in NSC will be allowed as deduction u/s 80c or only interest accrued will be allowed?

Replies (10)

no......... 

Mis Sumiti Jain

The amount you invested in NSC will be allowed to you as ded. and not intt.

interest will be taxaxble under head other source.............

Investment for purchasing the NSC & Accrued Interest thereon

[considered as deemed Investment in NSC] both would be allowed for deduction u/s 80 C.

Tax effect of Accrued Interest would be NIL as it would form part of Total Income

[Income from other sources] & then would qualify for deduction as well.

The amount invested in NSC will be deducted u/s 80C and the accrued interest shall be first added to income u/h other sources and will subsequently be deducted u/s 80C.

Thanx to all to clear my doubts

Originally posted by : APOORV SAXENA

The amount invested in NSC will be deducted u/s 80C and the accrued interest shall be first added to income u/h other sources and will subsequently be deducted u/s 80C.

agree with apoorv

The Investment in NSC's will be available as deduction in the year of investment.Te accrued interest will be allowed as deduction on completion of one year and each subsequent yeari.e  on completed year to year basis..The interst accrued in the year of maturity is not eligible for deduction as the interest stands received on the maturity date

Originally posted by : Rachit

Mis Sumiti Jain

The amount you invested in NSC will be allowed to you as ded. and not intt.

interest will be taxaxble under head other source.............

The initial  Investment in NSC is included in Sec. 80 C deduction alongwith other deductions subject to a maximum amount of Rs. 1.00 lacs.  Further,  accrued interest will be allowed as deduction on completion of one year and each subsequent year, as long as the same is not received by the holders. 


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