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hi
After calculating income 35000 is left on which I have to paid tax so I have decided to purchase NSC of 35000, my question is that if I purchase this 35000 nsc then this 35000 amount is deducted from 35000 amout which is left after calculating income as shown in first line so that my tax is zero and after next how can I get tax benefit of NSC
Pls reply as soon as possible as i have to purchase NSC
Thanks,
Amar
Your query is not clear, what I understood is that from it that Upto Rs. 1,60,000 - No Income Tax. Your income is Rs. 1,95,000 (Rs 35000 More than standard tax rebate). So your taxable income is Rs. 35,000. If you invest Rs. 35000 in NSC, you will be eligible for income tax deductions under sec 80C (which is maximum 1,00,000). So no tax at all.
Total Income - Rs. 1,95,000
Standard Decuctions - Rs 1,60,000
Less: Section 80C Deductions
NSC Rs. 35,000
Taxable Income - Zero.
Quote:
Originally Posted by PolicyWala
Thanks for reply , ok my taxable amount is zero after purchasing Nsc, as NSC is for 6 years then in next year will i get tax benefit from this nsc if yes then how pls explain
Amar
Maturity period for NSC is 6 years that you can encash it after 6 years.Quote:
Originally Posted by amartlk
For tax deductions under sec 80C, you need to deposit money in PPF, NSE, Life Insurance, ELSS etc in that financial year again.
Quote:
Originally Posted by PolicyWala
ok, means from 35000 nsc only i get one time tax benefit not every year upto maturity of that nsc?? is it correct
You are correct.Quote:
Originally Posted by amartlk