income from other sources

This query is : Resolved

sarita (Querist)
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12 July 2010 what is the provision related to the NSC VIII issue matured with interest
=taxable for the A.Y.2010-11/or not?

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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12 July 2010 Interest received on NSC is taxable under the Head Income from other sources

Rahul Gupta

Rahul Gupta (Expert)
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12 July 2010 Agreed with Mr Sunil.
In addition to this, Deduction for the interest on NSC can be claimed as deduction u/s 80C.

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sarita

sarita (Querist)
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12 July 2010 I also want information about the matured NSC principal amount??????
Is it taxable under the head Income from other sources.

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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12 July 2010 NSC principal amount is not taxable under any head in income tax act.

Rahul Gupta

Rahul Gupta (Expert)
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12 July 2010 The money received as maturity value, represents only money invested by you and therefore is not taxable in the year of receipt.

Also for more clarification on NSC check the following links >

http://in.answers.yahoo.com/question/index;_ylt=A0WTZWd48zpMhggAkRmCHwx.;_ylv=3?qid=20090123223630AAUJfLM

http://www.rediff.com/getahead/2006/dec/14nsc.htm