HELLO FRIENDS, I HAVE PURCHASES NSC OF RS. 30000 IN 2006
AND KVP OF RS 50000 IN 2007 AND I HAVE DEPOSITED RS 70000 IN MY PPF A/C
PLS HELP ME WHAT IS THE TAX BENEFIT
IS THE CONTRIBUTION EXEMPTED OR INTERST AMOUNT IS EXEMPTED
PLS HELP ME
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PLS HELP
Replies (3)
Dear Raj,
Interest on NSC is treated as income but on the other hand it is allowed as dedutcion under 80C since the amount of interets gets reinvested.
If Income has not been shown on yeraly basis then entire interest will be taxable in the year of maturity.
If NSC is of 7/12 years then its interest is exempt u/s 10(15)
Investment in PPF is eligible u/s 80 C for tax benefit. Its interest is exempt u/s 10(15)
Investment in KVP is not eligible u/s 80C. Interest is taxable either on receipt or accural basis as per method of accounting.
but the principal amt is claimed only in the year of investment in case nsc
Ya u r rite
Investment in NSC will be eligible u/s 80 C for deduction.
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