I have invested in NSC in post office 5 years back. The amount matured in 2022-23 FY. The post office has shown the cumulative interest for 5 years in AIS. As far as i know, the interest for first 4 years is exempted under 80c and only 5th year interest is taxable. My question is if someone has not shown that interest in previous year return under section 80c, whether he can claim this benefit in this year? At the same time suppose out of 5 years, in 1 year he has opted for new tax regime, whether he can get the benefit of only showing last year interest of nsc. In this context suppose someone invests in ppf 150000 along with nsc, whether it is mandatory to show ppf in itr for deduction under 80c the ppf subscription?
Thanks and regards,
Dr. Aritra Ganguly
Ans: Interest accrued during the year on NSC is taxable. Thus, interest of 5th year will only be taxable and it is advisable to file feedback in AIS that balance 4 years interest is already offered to tax.
Salaried person can change tax regime every year and person can opt in to old scheme in subsequent year to claim deductions.