NSS&NSC

This query is : Resolved

rajesh (Querist)
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21 April 2010 DEAR SIR/MADAM

WHAT IS THE DIFFARANCE BETWEEN POSTAL NSC AND NSS AND WHAT IS THE INCOME TAX EXEMPTION ON THESE SAVINGS

1. INTEREST IS ALLOWABLE ON NSC AND NSS

2. INVESTMENT IS ALLOWABLE IN 80C

3. IF NSS OR NSC IVEST MENT IS WITHDRAWN BEFORE DUE DATE IS TAXABLE

PLEASE TEL

THANKS IN ADVANCE

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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21 April 2010 NSS is not active now.
Only NSC is active now.
Investment in NSC is allowable u/s 80 C.
Interest on NSC is taxable on accural basic year to year and same interst is assumed that these are i invested. I.e Deductin on interset on NSC is allowed on 80 C. Premature encashment of the certificate is not permissible except at a
discount in the case of death of the holder(s), forfeiture by a pledgee and
when ordered by a court of law.