Hello Since 80L Section has been removed,interest of NSC is taxable.So,tax impact of it will be nil-because previously,one could claim tax rebate on the interest of NSC,which was reinvested,every year.Now,interest is taxable,so your income to that extent is increased.You get tax rebate on the amount,that is reinvested.So,on one side you claim tax rebate on your same increased income & on the on the other side you increase your taxable income! Besides,by doing so,your you get less space under Section 80C-of investing Rs.100000 of your taxable income.Makes sense?
The article is good and gives basic fundas about the both schemes. But I would like to add there that now PPF you can not open in your son's name if he is a minor.
This is very good article I came through today, it clears the confusions of various people who has a doubt between PPF and NSC looking for more of such kind thanks a lot and all the best.
