National Saving Certificate (NSC) Interest Income is not exempt from Tax and it is fully taxable as limit of u/s. 80C.
According to Rule 15 the NSC (VII Issue) Rules, 1989 the interest on N.S.C shall accrue to the holder(s) of the certificate at the end of each year and the interest so accruing at the end of each year shall be deemed to have been re-invested on behalf of the holder and aggregated with the amount of face value of the certificate. So, Interest on N.S.C. should be offered for taxation on accrual basis every year. It may further be noted that the interest accrued every year is deemed as reinvested therein and is also eligible for deduction u/s 80C.
At the time of maturity, the reinvestment for purchase of another NSC’s, won’t make the interest income exempt from income tax.
According to Rule 15 the NSC (VII Issue) Rules, 1989 the interest on N.S.C shall accrue to the holder(s) of the certificate at the end of each year and the interest so accruing at the end of each year shall be deemed to have been re-invested on behalf of the holder and aggregated with the amount of face value of the certificate. So, Interest on N.S.C. should be offered for taxation on accrual basis every year. It may further be noted that the interest accrued every year is deemed as reinvested therein and is also eligible for deduction u/s 80C.
At the time of maturity, the reinvestment for purchase of another NSC’s, won’t make the interest income exempt from income tax.
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