National Savings Certificates
This query is : Resolved
28 July 2010
How is interest calculated on National Savings Certificates?
28 July 2010
Every year the interest on NSC accumulates till maturity. That interest is treated as again invested in NSC. That interest is eligible for deduction (Previously called rebate) U/s 80c. Please note that the interest on NSC at the maturing year is eligible for tax benefit as it is not again reinvested. Calculation of Interest on NSC: Now the rate of interest on NSC is 8% Pa. They will give you compound interest for every 6 months. It will be as follows (Interest calculated on Rs.100/-.as example) Rs. 8.16 1st year (Can claim full even if you buy on 31st March) Rs. 08.83 2nd year Rs. 09.55 3rd year Rs.10.33 4th year Rs.11.17 5th year Rs.12.08 6th year (No tax benifit) ------------ Rs.60.12 is the total 6 years interest (100+62.12=Rs.162.12) If you are having 25,000 NSC (Face Value), then you will finally get 160.12 x 250=Rs.40,030/-
28 July 2010
https://www.caclubindia.com/forum/accrued-interest-on-n-s-c--38550.asp
You can also download NSC interest calculator from above link.
You can also download NSC interest calculator from above link.
29 July 2010
WELL EXPLAINED BY SANJAY JI.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Tds on building rent monthly
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Confusion around Form 26QB fields
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Tax on income from business can set off house property loan
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
Trending Online Classes
CAclubindia
