I purchased NSC worth Rs 3.5 lakh on 18/06/2020. I will claim rs. 1.5 lakh u/s 80C in F/Y 20-21.
How should I treat the interest thereon? In which f/y should I claim the interest on NSC u/s 80C for the first time as the interest is treated to be reinvested in the same section?
Should I have to calculate the interest from 18June 20 - 31 March 21? If I do so then interest will be bifurcated into 6 financial years instead of 5 years. Pls tell me how to treat it.
1) Deduction up to Rs.1.5 lac can be claimed in FY20-21.
2) Interest for the year 20-21 will be taxable under IFOS
3) Yearly interest thereafter except for last year: Interest income taxable u/s IFOS and deduction available u/s 80C subject to the limit of Rs.1.5 lacs
4) For last year, interest is taxable u/s IFOS but no deduction u/s 80C
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