Nsc tax computation

Interest rate for NSC may depend on it's issue date. And interest is calculated compounded annually for which you get deduction u/s 80C. But in the year of maturity you may not claim it's intt. deduction. For income tax point of view, if you already claiming deduction of 1 lac u/s 80C, then your NSC intt. will be taxable.

NSC interest is taxable. The interest earned annually is reinvested and the same shall be eligible to be shown u/s 80C. The interest earned on maturity shall be taxable under the head income from other sources.