National Savings Certificate is a popular investment option that can go as it is safe and risk-free. You also earn a good profit out of it, if invested for a period of 5 years continuously. This initiative was started by the Government of India during the 1950s. As of 2022, you can get an interest of 6.8% in investing in NSC. But one thing you should be concerned about is ‘how to show NSC interest in income tax’. Since NSC is taxable, therefore, you must show it while filing your income tax return. Let me share with you where to show NSC interest in income tax.
Now make payment of all your utility bills through your credit card and earn exciting cashback and rewards. Get home loans at the lowest interest rate from NoBroker and avoid hefty paperworkHow to show NSC in income tax?
One of the primary benefits of the National Savings Certificate is that you can claim a tax exemption after investing in NSC. But there are two important points that you should consider while investing in NSC.
As an investor, you will get a tax exemption of Rs. 1.5 lac every year for a tenure of 5 years under Section 80C of the Income Tax Act.
The interest earned should be included under Section 80C for a period of 4 years to get the tax exemption up to Rs. 1.5 lakhs.
After maturity, you cannot avail of any tax exemption, so in the fifth year, you need to file the investment under the head ‘Income from Other Sources. The tax will be applicable as per the income tax slab rate.
These are the points you must remember while filing income tax returns for NSC.
I hope you find my answer on how to show NSC interest in income tax informative.
Read more:
What is national saving certificate?
Is national saving certificate taxable
How to get loan against NSC?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
Authors Of The Question
How to show NSC interest in income tax?
Ganesh
365Views
2 Year
2022-08-18T10:29:27+00:00 2022-08-18T10:29:29+00:00Comment
1 Answers
Share