21 January 2016
Dear Sir, An assesse had purchased a NSC on 14.06.2010 and it will mature on 14.06.2016. Please tell for which year interest will be accrued (i.e. 4th year or 5th year) as he is filling the Return for F.Y. 2014-15.
21 January 2016
Interest on NSC accrues every year and stands reinvested at the end of each year. the interest is accounted every year as income from other sources and as the amount is reinvested, credit is taken for the reinvestment by way of deduction under Section 80C. In the last year of the scheme however, as there will be no reinvestment, the deduction under Section 80C will not be available and the interest for the year will be offered to tax.
21 January 2016
you take accrued interest till 31.03.2015 declare interest in Income from Other sources , same claim under 80C , but last year you will not get interest reinvestment benifit. you can calculate refer table for accrued interest NSC (VIII) & (IX) Issue Tables A to E & F & G for calculation of accrued interest.
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