If I invest in PPF or NSC today will I be excempted from tax on withdrawal on maturity.
1 Answers
Interest earned from NSC is taxable as per tax slab rates. NSC is under EET as of now too. After DTC (Direct tax code) comes into play from 1st April 2012, even investment won't be non-taxable too.
Investment in PPF is under EEE regime as of now. It will remain under EEE even after DTC implementation. Interest received on withdrawal is non-taxable.
Related