Tax on Interest received in 5th year of NSC

Share
Print
Share This Thread
  1. SHAH PRITESH

    SHAH PRITESH New Member

    I WANT TO KNOW THAT HOW IS THE TREATMENT OF INTEREST ACCRUED OF 5TH YEAR ON NSC VIII ISSUE?
    WHEATHER IT IS ALLOWED AS DEDUCTION UNDER SECTION 80C OF INCOME TAX ACT 1961?
    IS THERE ANY CIRCULAR ABOUT SUCH TREATMENT
     
    SHAH PRITESH, Jan 7, 2015
    #1
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    If the Interest is reinvested in NSC, then only you can claim a deduction under Section 80C.

    Therefore, if it is a 5 year NSC, then the interest of first 4 years would be reinvested and total principal amount repaid along with interest after completion of 5 years.

    As the interest of the 5th year has not been reinvested, therefore it would be taxable as per the income tax slabs
     
    gaurav_kumar, Jan 7, 2015
    #2
  3. SHAH PRITESH

    SHAH PRITESH New Member

    THANK YOU,
    IT WAS REALLY HELPFUL FOR ME
     
    SHAH PRITESH, Jan 7, 2015
    #3
  4. Dr (CS) Rajeev Babel

    Dr (CS) Rajeev Babel New Member

    Accrued interest ( which is deemed as reinvested) is also qualified for deduction for any year (except for the last year)
     
    Dr (CS) Rajeev Babel, Jan 7, 2015
    #4
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
Which bank/NBFCS in Chennai pays less interest on a business loan? Misc. Mar 30, 2018
PPF interest Misc. Apr 22, 2017
Interest free loan Misc. Feb 10, 2017
FD CUMULATIVE INTEREST TDS PROJECTION Misc. May 23, 2016
Fixed deposits under FRTD interest in Capital Gains account Misc. Apr 20, 2016