Tax on NSC

[Investor]

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

[CONFUSED]

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%.

[Taxman]

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

Yes, You can take the benefit of ITax.
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/-