Taxation on NSC (National Savings Certificate) - Basunivesh

Q & A Forum › Category: Income Tax › Taxation on NSC (National Savings Certificate)

sukumar asked 2 years ago

I had purchased 6 yrs NSC for Rs. 1.00 lac in 2012-13 and another IX NSC Rs. 1.00 lac in 2013-14 for 10 years. I have not shown the yearly accrued interest in my yearly income tax return as income from other sources as well as taking 80C benefits. Can I show the total accrued interest for both the NSC in my return as ” Income from other sources” on maturity of respective years.
If I transfer money to my wife and son’s sb a/c and they invest it in bank FD, Should the interest received be taxable in my hand.

1 Answers

basunivesh Staff answered 2 years ago

For past years, you can’t do. But from current year you can do so by showing the earned income and the re-investment in NSC.
Yes, you can invest in your wife’s and kid name. But yes, the interest earned will be taxable in your hand.