Taxability of NSC

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Subrahmanyam

Subrahmanyam (Querist)
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26 January 2009 Are investments made in NSC for deduction u/s 80C taxable at the time receipt on maturity / redemption

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 January 2009 Principal is tax free. Interest is taxable.

C A GROUP COACHING

C A GROUP COACHING (Expert)
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26 January 2009 NO NOT TAXABLE. EVEN INTEREST AT MATURITY WILL NOT BE TAXABLE AS WE CONSIDER ACCUMULATED INTEREST ON YEAR TO YEAR BASIS & CLAIM IT AS REINVESTMENTS SO INT. RECD WILL BE ACCUMULATED EXCEPT INT FOR THE LAST YEAR OF MATURITY

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Subrahmanyam

Subrahmanyam (Querist)
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26 January 2009 Can you kindly quote any reference / case law etc in this regard

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 January 2009 http://www.financialexpress.com/news/tax-on-nsc-interest-is-paid-on-accrual-basis/200242/1

Pl see the site and read the answer given therein for a similar question.