Quote Originally Posted by engelbert View Post
My Question is - my NSC opened in 2009 which is maturing this year 2012, will there be any tax deduction? and how much Tax will be deducted from it?
Whatever interest in earned in a year gets reinvested with in initial principal within the same NSC investment. The entire interest earned for the entire period of 5 years qualifies for deduction under section 80c at the end of the term or at the time of maturity.

The above accrued interest should be shown as interest income under the head ‘income from other sources’. Then it should be claimed as deduction under section 80c.