Tax Treatment for NSC

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bharatchandak asked 8 years ago

Hello Sreekanth Sir , I have a query on Tax treatment for NSC. I have invested in NSC 8th issue for an amount of 10000 in 2012. The NSC got matured in 2017 but i did not redeem it at that time. I redeemed it after 5 years 8 months. I got 7.8% interest for 5 years and 4% interest for 8 months. I have claimed it as investment under 80c in year 2012 but did not declared the interest as income in subsequent years. Now after 5 years 8 months , what will be my tax liability.

2 Answers

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Sreekanth Staff answered 8 years ago

Hi, You may kindly go through this article....

bharatchandak replied 8 years ago

Read the article but still one thing is not clear ! Suppose i calculated 5 years net NSC interest , deduct 4 year interest under 80C and paid final taxes on last year’s interest and 8 extra month’s interest ! Will that be correct ?

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Sreekanth Staff answered 8 years ago

Hi, I believe that the entire interest income will be counted as income in the last year and needs to be shown under the head 'income from other sources' in your ITR.