What are the tax deductions under NSC?

General
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What are the tax deductions under NSC?

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Investors in NSC can enjoy tax benefits under Section 80C of the Indian Income Tax Act, including:

  • A tax deduction on the amount invested, up to a maximum of Rs. 1.5 lakh per financial year.
  • The interest earned is deemed reinvested and qualifies for tax exemption under Section 80C, with the interest being taxable only at maturity.

NSC provides a cumulative tax benefit, allowing deductions along with other eligible investments under Section 80C.