Will "Accrued Interest on NSC" be considered as an income also?

Question

Under section 80C for Income tax deductions, there is a way to declare "Accrued Interest on NSC" .Will this Interest portion declared be considered as an income also, so that there is no tax exemption for this amount?

Answer 1

Yes. Accrued interest on NSC will be added to your income and than again it will be deducted under section 80 C.

Answer 2

This is not the way; what you invest in NSCin this FY + whatever is computed as Accrued interest of last 6 years is taken as "investment" for this FY under 80C for NSC since the interest is being reinvested. This is not income.

To know your accrued interest, you may use the calculator at http://prrajan-tax.blogspot.com/2008/03/... for FY09

Answer 3

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