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NSC Investment u/s 80c

Sumiti Jain (FP) (1364 Points)

17 February 2011

Is amount invested in NSC will be allowed as deduction u/s 80c or only interest accrued will be allowed?

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10 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 17 February 2011

no.........

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Rachit (Ca-Final Article.) (565 Points)
Replied 17 February 2011

Mis Sumiti Jain

The amount you invested in NSC will be allowed to you as ded. and not intt.

interest will be taxaxble under head other source.............

(Guest)

Investment for purchasing the NSC & Accrued Interest thereon

[considered as deemed Investment in NSC] both would be allowed for deduction u/s 80 C.

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(Guest)

Tax effect of Accrued Interest would be NIL as it would form part of Total Income

[Income from other sources] & then would qualify for deduction as well.

1 Like

APOORV SAXENA (Chartered Accountant) (794 Points)
Replied 17 February 2011

The amount invested in NSC will be deducted u/s 80C and the accrued interest shall be first added to income u/h other sources and will subsequently be deducted u/s 80C.

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Sumiti Jain (FP) (1364 Points)
Replied 17 February 2011

Thanx to all to clear my doubts

AVIJIT (CA FINALIST) (370 Points)
Replied 17 February 2011

Originally posted by : APOORV SAXENA
	The amount invested in NSC will be deducted u/s 80C and the accrued interest shall be first added to income u/h other sources and will subsequently be deducted u/s 80C.

agree with apoorv

CA Chandrasekaran.S.R (Proprietor) (280 Points)
Replied 18 February 2011

The Investment in NSC's will be available as deduction in the year of investment.Te accrued interest will be allowed as deduction on completion of one year and each subsequent yeari.e on completed year to year basis..The interst accrued in the year of maturity is not eligible for deduction as the interest stands received on the maturity date

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Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)
Replied 18 February 2011

Originally posted by : Rachit
	Mis Sumiti Jain The amount you invested in NSC will be allowed to you as ded. and not intt. interest will be taxaxble under head other source.............

G V RAMASWAMY (ASST. GENERAL MANAGER) (27 Points)
Replied 20 February 2011

The initial Investment in NSC is included in Sec. 80 C deduction alongwith other deductions subject to a maximum amount of Rs. 1.00 lacs. Further, accrued interest will be allowed as deduction on completion of one year and each subsequent year, as long as the same is not received by the holders.