
Originally Posted by
PolicyWala
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.