06 May 2011
1) Mr. X is has to pay a Tax Liability of Rs. 5000, but he wants to save it by purchasing NSC. What is the amount of NSC to be purchased to save a tax of Rs. 5000? Also if he purchases them in February 11 will how much interest deduction will he get for F.Y 10-11?
2) Mr. Y purchases NSC worth Rs. 25000. Will he get deduction of the NSC purchased or only the deduction of Interest earned on NSC is allowed?
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