Tax treatment of NSC interest clarified: include interest on National Savings Certificates (First Issue) in tax computation for compensation. The Income-tax Act amendment includes interest on National Savings Certificates (First Issue) within the taxable base for compensation and related payments by inserting references to that interest into the clauses governing the amount subject to tax, and directs that tax on both the compensation (or other payment) and that interest be computed under the existing tax computation provisions applicable to such receipts.
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Provisions expressly mentioned in the judgment/order text.
Tax treatment of NSC interest clarified: include interest on National Savings Certificates (First Issue) in tax computation for compensation.
The Income-tax Act amendment includes interest on National Savings Certificates (First Issue) within the taxable base for compensation and related payments by inserting references to that interest into the clauses governing the amount subject to tax, and directs that tax on both the compensation (or other payment) and that interest be computed under the existing tax computation provisions applicable to such receipts.
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