Nsc taxability at maturity
This query is : Resolved
18 April 2012
Is NSC whole amount received at maturity is taxable or only the interest received is taxable?
18 April 2012
Dear Salil,
Interest on NSC is only taxable and not the whole maturity amount
Since NSC is for 6 years
every year accrued interest on the NSC is taxable as per the NSC table but the same interest is also allowed u/s 80C as deduction (Subject to 1 Lakh limit) since interest earned is reinvested
but 6th year interest is not allowed as deduction since it dosenot get reinvested
Interest on NSC is only taxable and not the whole maturity amount
Since NSC is for 6 years
every year accrued interest on the NSC is taxable as per the NSC table but the same interest is also allowed u/s 80C as deduction (Subject to 1 Lakh limit) since interest earned is reinvested
but 6th year interest is not allowed as deduction since it dosenot get reinvested
Message likes :
4 times
20 April 2012
Yes Sameer is correct and spelling out the provisions which are applicable to NSC. I Agree with him
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Applicability
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- RCM - commercial rent paid to URP under GST
- Offsetting interest income against derivative trading losses
- TDS NUMBER SURRENDER
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- Gst Sales of FY 2023-24
- Legal heir raised refund , but refund issued to the closed account of deceased.
- My Last working day in current org is in novemebr 2024 but they are asking me to submit IT proof
- Indexation benefit applicability
- SEC 54 OF IT ACT
- Passed group 2 exams under wrong gender
- REQUIREMENT OF 15CB
- QUERY FOR RCM ON RENT
- APPEAL-CIT
- Payable outstanding for years disallowance
- Whether still royalty
- Issue of gst e invoice
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
