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Investments in national saving certificates

Tax queries 370 views 1 replies

SACHIN AROLKAR, Goa Carbon Ltd

MANAGER FINANCE & ACCOUNTS

61 Points Joined February 2014

Dear Sir,

One of our Company employee has invested money in "National Saving Certificate" but in his Wife Name. Please let me know, whether husband can take Tax benefit on his tax liability in this case. Please note that his wife is not in service and does not have any other source of income.

Regards,

SACHIN AROLKAR

9822126890

Replies (1)

Guest

The deduction for NSC under section 80C is to be given to the person in whose name the investment is done. It is specifically mentioned in case of PPF, LIc etc that it can be in the name of spouse. But in case of NSC, not so mentioned.

also remember that interest accrued on NSC will be taxed in the husband's hands only as clubbing provisions will be attracted.