Dr. Jones (Director) (253 Points)
02 February 2010Hi,
I had invested (Rs 30000) in NSC 6 years back.
Now, on maturity I received Rs. 48,000.
1. Will Rs.18,000 be treated as interest income or other income?
2. Do I have to declare the full Rs.18,000 in this year's income and is this amount taxable?
Thanks!
CA. Rajesh P. Ahir
(In Service @ PSU)
(687 Points)
Replied 02 February 2010
Interest income on NSC is Demmed to be reinvested for first 5 years. Hance the interest amount of 6th may be taxed.
Amir
(Learner)
(4016 Points)
Replied 02 February 2010
Dear Dr. Jones,
Income of interest can be disclosed either on receipt basis or accrual basis.
If u have shown the income every year on accrual in ur return then only remaining amount is the income of the year in which NSC is matured.
If u have not shown any income ealier then entire Rs. 18,000 will be treated as Interest income of the year of maturity..
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