Tax on Amount Withdrawn from the Post Office Scheme – NSS ’87 ?

POSTED BY jigneshdesai05 ON August 19, 2013 8:20 pm COMMENTS (2)

   Amounts deposited into this Scheme (NSS ’87) were allowed as Deduction u/s 80CCA of the I-T Act 1961 .

   Four Persons had deposited amounts into the scheme NSS ’87 in the following manner :-

Person Year of Deposit  Amount Deposited    
                        
A        AY 90-91       10,100        
          AY 91-92       20,000
          AY 92-93       20,000    

B      Same Details as Person A

C       AY 91-92       10,100
         AY 92-93       40,000

D       AY 92-93       20,000   

   The entire amounts were taken as Deduction from the Total Income of the respective Years in which they were Deposited in case of all the above persons.

  All the persons withdrew the entire amount of Total Deposits made by them into their NSS’87 Accounts + Interest accrued till date on the Deposits in AY 14-15 . Further , all of them were alive in the Year of Withdrawal (i.e. In all cases , the account Holderhimself/herself was alive when the amount was withdrawn) .

  So , how will the Taxability be for all of of the above persons in respect of the amounts withdrawn by them from this scheme in AY 14-15 ?

2 replies on this article “Tax on Amount Withdrawn from the Post Office Scheme – NSS ’87 ?”

  1. jigneshdesai05@yahoo.com says:

    Thanks , Ashal

  2. Dear Jignesh, full amount is taxable in the year of final withdrawal.

    thanks

    Ashal

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