National Savings Certificate with post office

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National Savings Certificate with post office

I had few NSC deposits with post office, which matured in Sept 2016.
I received income total income of Rs 50,000 including principal amount.
I would like to know is this Rs 50k taxable income? I have received income tax exemption in the year I purchased these NSC.

Also please clarify has the post office already deducted tax on Rs 50k?
If yes then will I get TDS certificate from post office?

Profile photo of Sandeep Asked By: Sandeep 1 replies 1 helpful answers Last Updated: 4 months ago
  • Profile photo of SandeepSandeep
    Participant

    I had few NSC deposits with post office, which matured in Sept 2016.
    I received income total income of Rs 50,000 including principal amount.
    I would like to know is this Rs 50k taxable income? I have received income tax exemption in the year I purchased these NSC.

    Also please clarify has the post office already deducted tax on Rs 50k?
    If yes then will I get TDS certificate from post office?

  • – The interest on the NSC is taxable and not the principal amount. But whether accrued interest on NSC shown in earlier year as income? If not then the interest will be taxable.

    – If interest on the NSC is more than 10000 INR then post office will deduct the TDS.

    – If Post office will deduct the TDS then yes you will receive 16A form from the post office.

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