15 July 2010
Interest and PPF and NSC should be shown under the head the Interest. The entry for PPF should be:
PPF a/c DR Interest on PPF Cr
Likewise interest of NSC can be done.
Interest on PPF is exempt from Income Tax while Interest on NSC is taxable under the head Income from Other Sources. However interest accrued for first five year can be claimed as deduction u/s 80C.
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