NSC Tax Benefit in Computation of Salaried Income

Dear Shilpa,

(1) NSC Purchased during the year : Eligible for deduction u/s 80C [Aggregate admissible amt. u/s 80C is Rs. 100,000]

(2) NSC purchased in any previous year : Interest accrued on NSC should be added to Income & also eligible for deduction u/s 80C as such Interest accrued is considered as reinvested. In the last year i.e. in 6th completed year, interest accrued should be added to income but that interest is not eligible for deduction u/s 80C.

For Interest Rates on NSC, pls refer to Table for NSC given in Income Tax Ready Reckoner by V G Mehta.

Ms. Shilpa

I agree with Mr. NJR. Int. on NSC is  also available u/s 80C upto the maximum limit of Rs. 100,000/-

Surana,Chennai

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