27 May 2010
Principal amount received on maturity is not taxable currently.
Interest portion though reinvested will be taxable in the year of receipt if interest not accrued on yearly basis. If interest accrued on yearly basis then only that years interest taxable in that year as already the accrued interest has been taxed in earlier year.
27 May 2010
Interest on NSC ia taxable accural basic. Hence at the time of maturuity that Interst for that year will be taxable and you got the deduction u/s 80 C of Total Reinvested Amount.
27 May 2010
NSC is always made in multiple of Rs.5000. Then how you can reinvested total amount . That amount which you will reinvested in mutiple of 5000. you can get deduction u/s 80 C.
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