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Is nsc taxable (individual salaried employee)

Ravi Kumar Ds (7 Points)

12 September 2018

Is NSC bonds are taxable? If yes, how much?

I would like to know can I adjust with capital loss incurred in same year. How to do it?

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4 Replies

Mohak (student) (54 Points)
Replied 12 September 2018

National saving certificates are investments which are available for deduction from total income under section 80C upto the investment amount of 1.5 lac.
Investment over this limit is not allowed as deduction.
moreover interest on such NSC is taxable unless it is reinvested

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Ravi Kumar Ds (7 Points)
Replied 12 September 2018

Can I reinvest now (after closing NSC bond) of same amount interest + Principal and save tax?

Mohak (student) (54 Points)
Replied 13 September 2018

Deduction under 80C is eligible only in the year in which investment has been made.
For example if you invest principle and interest amount of 150000 on 12 september 2018 you are eligible for deduction in year 2018-19 (assessment year 2019-20)

Ravi Kumar Ds (7 Points)
Replied 13 September 2018

Hi, SOrry, My query is not clear, In case if I reinvest the NSC after withdrawal, can the tax which I earned earlier is consider as taxable income? Ex: Assume, I got 850/-Rs INR as interest when I withdraw. Now, it I invest both 850/-Rs as part of NSC, shall this will be amount is considered under taxable income? I can understand, I can save tax from 80C. But I need to reduce my taxable income not by 80C but through reinvestment.