Tax Treatment - CiteHR
Hr Consultant

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What is the Tax Treatment as per the income tax Act,1961 for following investment at the Maturity ? pls difine brif 1. PPF 2. NSC 3. ELSS 4. Bank Deposits 5. ULIP
Hello Mayur,
Details of the Tax implication at the time of maturity for the instruments mentioned by you are as under :
1) PPF - full amount is non-taxable on maturity (15 yrs or any additional 5 years over 15 years)
2) NSC - taxable on maturity
3) ELSS - taxable if withdrawn during the lock-in period. Non-taxable if withdrawn after the lock-in-period.
4) Bank Deposits - taxable on maturity
(extend of tax payable by you depends upon the slab where you fall into).
Hope your queries have been answered.
Cheers, AB

Sorry Mayur,
I do not understand what you are trying to say with regard to NSC.
If you have already got your NSC without any deduction, then you are still required to pay tax. Do not forget that all these earnings will be seen in form 26AS. So there is no way you can escape. I suggest, you open your 26AS form by logging into your internet bank account and then click on 26AS which would be a link available. This will take you to the income tax site whereby, by furnishing your pan number, you will be able to extract your 26AS.
If you are trying to say that you have still not received the NSC amount, then you will get it from the respective Post office in a day or two. If it is maturing in the current financial year, it will be taxed in the current year. If it matures in the next financial year, it will be taxed next year.
Hope the rational is clear to you.
Cheers, AB

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