Nsc accrued interest?

Question

Is NSC ACCRUED INTEREST TO BE CONSIDERED AS INTEREST INCOME . WHERE SHOULD IT BE SHOWN IN ITR 1 (ALONG WITH INCOME ) OR SEPARATELY BELOW UNDER TAX EXEMPT INTEREST INCOME (25)

Answer 1

NSC 'ACcrued" interest in itself means that the interest gained is not given to the purchaser of the plicy immediately but is given back to the Scheme until maturity. In effect this interest is only notional. This interest is not an inccome but is an investment and can be declared under sectyion 80(C) for NSC deposits...