09 July 2022
One of my relatives have purchased NSC from Post office and as per the understanding from the postal NSC rules, the NSC yearly accrued interest is treated as reinvested along with the principal amount till 4 years, hence, eligible for tax deduction as per 80 C. The last year (5th year) accrued interest will be applicable for tax lability as per the individual slab rates.
Sir, query is that whether the yearly accrued interest of NSC upto 4 years need to show as income under 'income from other sources' when this interest was not claimed as deduction under 80C of that year or show only the 5th year accrued interest(not all the years accrued interest) as income under "income from other sources".
Your valuable advice is sought for clarifying our query on the above matter, Sir.
09 July 2022
Accrued interest is also required to be declare for all the 1st to 4th year (u/h. Income from other sources); while same can be claimed as deduction u/s. 80C.
CAclubindia
