07 March 2009
Suppose I have invested Rs 1 lac in NSC-VIII in the assessment year, can I deduct this full amount? Or only the interest earned is deductable? What exactly is the meaning of "deemed to be reinvested?
07 March 2009
Full amount of Rs.1 Lac will be deducted in assessement year in which amount is invested.Interest earned at the end of the year will be deductible from next year.Since NSC interest is not paid every year interest earned on it is "deemed to be reinvested"
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