I want to invest Rs 75000/- in NSC. Can I take the benefit of the same in income tax (for ever year or one time or not) & how much return should I get back after 6 years?
regards
Investor
Printable View
I want to invest Rs 75000/- in NSC. Can I take the benefit of the same in income tax (for ever year or one time or not) & how much return should I get back after 6 years?
regards
Investor
You can take Income Tax Benefit for invested amount the year, you have invested and the interest accruing every year would be claimed every year.
Return would be compounded half-yearly @ 8%.
Yes, You can take the benefit of ITax.Quote:
Originally Posted by Investor
Calculation of Interest on NSC-
The rate of interest on NSC is 8% Per Annum. You will get compound interest for every 6 months. It would be follows as (for example, we have taken Interest calculated on Rs.100/-)
1st year - Rs. 8.16 (Can claim full even if you buy on 31st March)
2nd year - Rs. 8.83
3rd year - Rs. 9.55
4th year - Rs.10.33
5th year - Rs.11.17
6th year - Rs.12.08 (No tax benefit)
Rs.60.12 is the total 6 years interest (100+62.12=Rs.162.12)
If you are having 75,000 NSC, then you will finally get 160.12 x 75,000= Rs.120090/-