Tds deduction on nsc interest by employer
This query is : Resolved
18 March 2013
Do am Employer have to deduct the TDS on NSC Interest in 6th year.
Pl. confirm about the taxablity on Intt. amount on NSC.
Pl. confirm about the taxablity on Intt. amount on NSC.
18 March 2013
no deduction as a employer.
18 March 2013
Employee may( if he wishes) declare it as income from other sources and TDS would be deducted by employer.
19 March 2013
Interest on NSC accrues every year and stands reinvested at the end of each year.
Therefore, usually, the interest is accounted every year as income from other sources and as the amount is reinvested, credit is taken for the reinvestment by way of deduction under Section 80C. In the last year of the scheme however, as there will be no reinvestment, the deduction under Section 80C will not be available and the interest for the year will be offered to tax.
If, however, one chooses to offer the entire interest income on cash basis in the last year, the entire interest will be taxable in that year
Therefore, usually, the interest is accounted every year as income from other sources and as the amount is reinvested, credit is taken for the reinvestment by way of deduction under Section 80C. In the last year of the scheme however, as there will be no reinvestment, the deduction under Section 80C will not be available and the interest for the year will be offered to tax.
If, however, one chooses to offer the entire interest income on cash basis in the last year, the entire interest will be taxable in that year
19 March 2013
H Ayush
I never offered interest to tax as my incomes were below the taxable income. What to do now?
I never offered interest to tax as my incomes were below the taxable income. What to do now?
20 March 2013
If Your Income is below the Basic exemption limit, then question of offered to tax where arised.?
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