2006-10-22 19:08:21 · 6 answers · asked by abhikdas27 1 in Business & Finance ➔ Taxes ➔ India
Since interest income is charged to tax under the head "Income from other sources", option is with you to show either on maturity or every year .This is as per section 145 of the I T Act which defines Method of Accounting for the purpose of I T Act. But the method of accounting has to be regular .
In my view its better to show the income on accrual basis i.e every year when it is credited. Because, the interest will be added to your income and again shall be deducted u/s 80 C of the I T Act since it is reinvested . Hence the effect is NIL. If you show it on maturity, huge amount may be inflate your taxable income of that year.
2006-10-23 04:19:56 · answer #1 · answered by q4tax 3 · 0⤊ 0⤋
Hi,
U do not need to declare anything. If u want some plan in which returns too are tax free, let me know.
2006-10-22 19:11:08 · answer #2 · answered by Sam 1 · 0⤊ 0⤋
Sure .You have to include the interest income of NSC in your earnings..
2006-10-22 19:32:38 · answer #3 · answered by Neeraja Singh 3 · 0⤊ 0⤋
Yes. You need to declare it in the returns. But you can also claim rebate from your taxable income
2006-10-23 01:41:11 · answer #4 · answered by Netarget 2 · 0⤊ 0⤋
You need to declare it.
Only when the interest is above Rs.12,000 it would be taxed.
2006-10-22 19:38:12 · answer #5 · answered by bala p 1 · 0⤊ 0⤋
let me also know
2006-10-22 19:16:56 · answer #6 · answered by Excellent E 2 · 0⤊ 0⤋