I have taken NSC for Rs.55000 3 years back. I have not showed the interest earned for income tax calculation. So, at the end of 6 yrs, when i get the money back, do i need to pay tax for the interest earned.
Kindly correct me if I am wrong. As per the current tax regime
1. Interest income on PPF is not considered as part of your income (i.e. “Income from Other Sources”)
2. Interest income on NSC is considered as part of your taxable income
3. Current max limit for investing to PPF account for claiming tax benefits is Rs 70,000/- p.a.
I have already made investment to PPF (I have invested Rs 60,000). I am not sure about the current limit. Whether it is Rs 60,000 or Rs. 70,000.
I also have earlier investments of NSC. So, can I show the interest accrued on them in Rs 1 lac investment limit? This way over the years the income from NSC would be distributed across years and the burden in the 6th year would be minimum