8 Replies to “wheher interest accrued on National Saving Certificate qualifies deduction u/s 80C ?”

  1. YES. It can be claimed on showing the deposit receipt. However, clarification can be had from itrules.com from net or Incometax.com


  2. Interest accrued on National Saving Certificate qualifies deduction u/s 80C within overall limit of Rs. 1 lac only. No further special treatment to such interest is extended anymore.




  3. Item number 9 of the following may help you.
    Following are the different items where you can invest to get a maximum deduction of 1 lac u/s 80 C

    1.LIC insurance premium (including payment made by govt employees to the central govt employees’ insurance scheme and payment made by a person under children ‘s defered endowment assurance policy){subject to a maximum of 20% of sum assured}

    2.Amount deposited as term deposit for a period of5 years or more accordance with a scheme framed by the govt (applicable from Assessment year 2007-2008)

    3.Payment in respect of non-commutableDeffered annuity plan

    4.Any amount paid as tuition fee (not including any payment towards development fees/donation/payment of similar nature) whether at the time of admission or otherwise to any university/college/educational institutions in india for full time education

    5.Salary deducted by employer (incase of Govt employee)

    6.contribution to Statutory provident fund and RPF.

    7.contribution towards 15yrs PPF

    8.contribution towards approved superannuation fund.

    9.Subscription to National Savings Certificate VIII issue.

    10.contribution for participating in the ULIP of UTI

    11.contribution for participating in the ULIP of LIC mutual fund

    12.Payment for notified annuity plan of LIC or any other insurer.

    13.Subscription towards notified units of Mutual Fund or UTI

    14.contribution to notified pension fund set up by Mutual fund or UTI (i.e retirement benefit pension fund of UTI)

    15.Any sum paid including accrued interest as subscription to home loan account scheme of the National Housing Bank or contribution to any notified pension fund set uo by the national housing Bank.

    16.Any sum paid as subscription to any scheme ofa> public sector company engaged in providing long term finance for purchase/construction of residential house in India.b> housing board constituted in India for the purpose of planning, development or improvement of cities/towns.

    17.Any amount towards the cost of purchase/construction of aresidential property (including repayment of loan taken from Govt. bank, cooperative bank,LIC,National Housing Bank,assessee’s employer where such an employer is a public company/public sector company/university/co-operativ… society)

    18.amount invested in approved debentures of, and equity shares in, a public company engaged in infrastructure including power sector or units of amutual fund proceeds of which are utilised for the developing, maaintaining,etc of a new infrastructure facility



  4. Before reading my answer let me clarify that I am not a CA. You kindly check out with the auditor

    Interest accrued on NSC is qualified for deduction under 80L
    Interest will be calculated on specific year
    eg. if u have invested
    1.60000 in 2003
    2.60000 in 2004
    3.60000 in 2005
    4.60000 in 2006

    Here each of the NSC ‘s interest will be calculated depending upon the year
    Then the total interest is calculated
    If the interest exceeds Rs. 12,000/- then the exceeded amount will be shown in “INCOME FROM OTHER SOURCES” or” CAPITAL GAINS”

    You will be exempted till Rs. 12,000/-
    This was the procedure till LAST YEAR.

    I AM NOT SURE ABOUT THIS YEAR

    Follow the link
    http://incometaxindia.gov.in/general/taxbenefits.asp






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