Income tax on NSC: If you opt to offer the interest for tax on receipt basis your tax liability may suddenly jump in the year of maturity(REUTERS) I have invested 5 ...

Apart from guaranteed returns, NSC, which has a maturity of five years, also offers benefit of income tax deduction on investment. The interest rate of small savings schemes, including that of PPF ...

Deposits up to Rs 1,50,000 in NSC qualify for deduction under Section 80C of the Income Tax Act. The accrued interest on NSC also qualifies for a deduction under the section. NSC interest is taxable.

Interest income earned on NSC is not exempt from tax and is thus, required to be disclosed in ITR. However, as the same gets accrued and reinvested, it becomes eligible for deduction under Section ...

NSC offers a fixed 7.7% interest, attracting investors with tax benefits. It has a 5-year maturity period, deposit requirements, and conditions for pledge, transfer, and premature closure.

NSC provides an annual interest rate of 7.7% with yearly compounding, while leading banks offer FDs with rates between 6.5% and 8% annually. NSC and tax-saving FDs both qualify for Section 80C ...

From the tax point of view, you may consider to invest into PPF or NSC to an upper limit of Rs 1,50,000 including employee's contribution to EPF. However, it may be noted that the interest earned from ...