Will there be any tax deduction on matured - National Savings Certificate (NSC)?

[engelbert]

I had invested 85,000Rs(2 seperate Certificate 40+45 thousand) in NSC in 2009(open in joined name 1st Name my Wife and Second Name Self) in 2010 i invested another 90,000Rs(2 seperate Certificate 45+45 thousand) in NSC(open in joined name 1st Name Myself and Second Name My wife Name) in 2011 i again invested 90,000Rs(2 seperate Certificate 45+45 thousand) in NSC(open in only in my Name) in 2012 i invested 80,000Rs(2 seperate Certificate 40+40 thousand) in NSC(open in joined name 1st Name my Wife and Second Name Self)

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?

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[Expert]

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.