I want to do investment for tax saving u/s 80C.
plz suggest which one is better, NSC or KVP??
Menu
NSC vs KVP
Replies (5)
NSC
Five reasons to invest in NSC:
- Save income tax up to Rs 1.5 lakh
- Guaranteed interest of 7.8.% per annum
- Maturity period of only 5 years
- Easily available at all post offices
- Interest is compounded and reinvested by default
isn't it 7.6% ??
also the interest earned is taxable as far as I know....how to save that??
and if I gift my NSC to someone....then is it taxable for the other person?
also the interest earned is taxable as far as I know....how to save that??
and if I gift my NSC to someone....then is it taxable for the other person?
Yes, agreed......
The government has cut interest rates on small savings schemes, including NSC and PPF for January to March 2018, the interest rates on these schemes have been reduced to 7.6%..
Though interest is taxable, but advantage is it gets reinvested to get 80C benefit (within limit of 1.50 L), so net effect is.... it does not get taxed.
You cannot get tax benefit in case of gift...... So, better to gift redemption amount.
if I purchase NSC of Rs 1 lakh, then it will fetch me 7600 at the end of year 1, which will be reinvested.
so 1,50,000 - 7,600 = 142400
is this the amount I am eligible to save u/s 80 C in the next year?
so 1,50,000 - 7,600 = 142400
is this the amount I am eligible to save u/s 80 C in the next year?
As of today maximum eligibility for exemption under sec 80C is 1.50 lakhs, whatever amount you invest............ so the cap is on exemption claim, not on investment part.
(N.B.: May be the limit get enchanced by next budget, on 1st Feb.)
Recent Topic
- Real operational bottlenecks after firms use Tally
- Purchase return under gst
- Long Term Capital Loss - cannot be carried forward
- Cross-utilization of ITC between Trading and Resta
- Form 121 eligibility for non deduction of TDS for
- Gold/silver etf. STCG. how to decalre in ITR at s
- ITR-2 : cash income that does not fall under any h
- Debit note issued to supplier
- Ca pratik takkar imp list
- TDS EXECESS AMOUNT ADJUSTMENT
Related Topics
CAclubindia
