RE:tax for NSC
by Amitabh on May 04, 2007 08:04 PM Permalink
Yes,interest from NSC is taxable on accrual basis,even though the full amount is received only on maturity.However,as interest is not actually received yearly so in those years when it is included in the income on accrual basis and not actually received,the same is deemed to be reinvested and is included for deduction under sec 80C within the overall limit of Rs 1 lac.
