Kumar (-) (38 Points)
10 April 2011How is the maturity amount of NSC to be computed? Will it be included in income from other sources and added to the taxable income when accrued interest for all the 6 years has been added to income in earlier relevant years? Will this income be exempt from tax? If exempted - whether full maturity value be exempt or only principal to be exempt?
also, whether fd maturity is to be included in income from other sources?
Thanks.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 10 April 2011
NSC is in your balance sheet assets side, year wise interest is also added to that, so only last year interest is subject to incometax. and after that the value will go equivalent to maturity value which get zero after maturity . so no tax on original investment + interest upto last year.
Kumar
(-)
(38 Points)
Replied 11 April 2011
So, the maturity value can be shown in the computation as exempt income then ( as is the case with dividends)?
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 11 April 2011
manutiry value does not comes in computation but only the current year interest is reflected.
if you have a money in bank in previous year , and withdraw in current year, then do you have to show that money in computation?
Kumar
(-)
(38 Points)
Replied 11 April 2011
thanks now I got it, so with the same logic, I understand that the fd maturity would also not be shown then :)
CAclubindia
