Tax deduction for National Savings Certificate contributions is available only to the person who furnished the taxable funds. Deduction under section 80C for NSC VI and VII is available only to the person who paid the subscription out of income chargeable to tax; in joint holdings the first-named may claim the deduction only if he contributed the funds. Interest on NSC is includible in the hands of the subscriber who furnished the taxable funds. Reinvested interest on the 6-year NSC VI Issue qualifies for deduction. An HUF may claim deduction where subscriptions by the karta in a member's name are shown to be paid from the family's taxable income and beneficial ownership vests in the family.
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 deduction for National Savings Certificate contributions is available only to the person who furnished the taxable funds.
Deduction under section 80C for NSC VI and VII is available only to the person who paid the subscription out of income chargeable to tax; in joint holdings the first-named may claim the deduction only if he contributed the funds. Interest on NSC is includible in the hands of the subscriber who furnished the taxable funds. Reinvested interest on the 6-year NSC VI Issue qualifies for deduction. An HUF may claim deduction where subscriptions by the karta in a member's name are shown to be paid from the family's taxable income and beneficial ownership vests in the family.
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