Nsc taxability at maturity
This query is : Resolved
18 April 2012
Is NSC whole amount received at maturity is taxable or only the interest received is taxable?
18 April 2012
Dear Salil,
Interest on NSC is only taxable and not the whole maturity amount
Since NSC is for 6 years
every year accrued interest on the NSC is taxable as per the NSC table but the same interest is also allowed u/s 80C as deduction (Subject to 1 Lakh limit) since interest earned is reinvested
but 6th year interest is not allowed as deduction since it dosenot get reinvested
Interest on NSC is only taxable and not the whole maturity amount
Since NSC is for 6 years
every year accrued interest on the NSC is taxable as per the NSC table but the same interest is also allowed u/s 80C as deduction (Subject to 1 Lakh limit) since interest earned is reinvested
but 6th year interest is not allowed as deduction since it dosenot get reinvested
Message likes :
4 times
20 April 2012
Yes Sameer is correct and spelling out the provisions which are applicable to NSC. I Agree with him
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