Nsc and PPF tax treatment

17 January 2020

can anyone tell me the tax treatment of nsc and ppf,?

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Deepak Gupta (CA Student) (15922 Points)
Replied 17 January 2020

Originally posted by : Rishi Jhajharia
	can anyone tell me the tax treatment of nsc and ppf,?

NSC:

Interest taxable as income under other source.

But such interest is deemed to be reinvested, except for last year and same is deductible u/s 80C.

Amount invested in NSC is also available for deduction u/s 80C.

PPF:

Interest exempt u/s 10(11).

Contribution made every FY is available for deduction u/s 80C.

Both subject to overall exemption limit of Rs. 1.5 lakh u/s 80C.

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