Tax on National Savings Certificates interest: three-part computation using reduced-income tax and an average rate for the interest. Section 112A requires a three-part tax computation for NSC (First Issue) interest included in an individual or other non-company assessee's total income: tax on the reduced total income after excluding the NSC interest and specified compensation/capital gains; tax on the NSC interest at an average income-tax rate that would have applied to that reduced income absent the excluded items; and tax on the compensation/other payment and capital gains computed under the provisions applicable to those items. The average rate is to be calculated as if the reduced income were wholly earned income.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax on National Savings Certificates interest: three-part computation using reduced-income tax and an average rate for the interest.
Section 112A requires a three-part tax computation for NSC (First Issue) interest included in an individual or other non-company assessee's total income: tax on the reduced total income after excluding the NSC interest and specified compensation/capital gains; tax on the NSC interest at an average income-tax rate that would have applied to that reduced income absent the excluded items; and tax on the compensation/other payment and capital gains computed under the provisions applicable to those items. The average rate is to be calculated as if the reduced income were wholly earned income.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
