Nsc

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Debleen Majumdar

Debleen Majumdar (Querist)
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28 March 2016 What is the tax treatment of maturity amount received on nsc and ppf ?

Ankur Singhal

Ankur Singhal (Expert)
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28 March 2016 DEAR
PPF IS EXEMPT FROM TAX ON MATURITY.
aT THE END OF NSC MATURITY PERIOD THERE WILL NOT BE ANY TAX LIABILITY ON PRINCIPAL AMOUNT INVESTED. INTEREST EARNED FROM NSC WILL BE TAXABLE UNDER HEAD INCOME FROM OTHER SOURCES.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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28 March 2016 Agreed with Expert Ankurji about PPF. I Want to add about NSC that Taxable Interest earned every year is automatically reinvested, and such re-invested interest qualify for tax rebate under section 80C of the Income Tax Act thats why Except Last Year Interest. Taxable interest will be deductible u/s 80C.

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