Nsc tax computation

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24 Points Posted on 24 December 2013

I have been purchasing 5-year NSC through Post Office every month (say 1000 Rs) in the name of my wife or sometimes jointly. My wife is home maker. My queries are as follows- 

  1. How to compute or calculate tax for such transactions?
  2. Whether joint NSC is more beneficial from Income Tax point of view?

Kindly guide. Thanks

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On 24 December 2013 at 16:55 Report
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Posted on 24 December 2013
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.
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On 24 December 2013 at 21:49
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Wealth Manager
5358 Points Posted on 25 December 2013

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. 

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On 25 December 2013 at 07:43

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