Interest on NSC is tax free or not

This query is : Resolved

Pawan Patil (Querist)
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30 November 2008 Dear Sir,

With reference to above subject I have invested in NSC. Interst on NSC is taxable or not ?

With best regards,

Vilas Choudhari

CA Debasish Banerjee

CA Debasish Banerjee (Expert)
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30 November 2008 Taxable. Add to Gross Total Income under the head "Income from other sources" and

then

One can avail Sec 80C exemption for the interest accrued (all interest considered, till the year of maturity, as these interests are considered as amount reinvestment and gets the benefit of investment). For the last year there is no such benefit available and it is fully taxable.