15 July 2008
No, the intt accrued on NSCs is taxable under the head of Income From Other Sources. However, the same is seperately elegible for deduction under section 80C for all the years except the last year.
17 July 2008
Only interest on notified deposits,bond or certificates are exempt u/s 10(15).
Following National Certificates have been notified to be exempt u/s 10(15)
Post Office National Savings Certificates (12 years/7 years), 7 year National Certificates(II Issue), 7 year National Certificates(II Issue)-Bank Series Existing NSC(VIII) series is not exempt as such
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