By Hindustan Times, 26/07/06
THE INCOME from interest on bank deposits, national savings certificates (NSCs), bonds and debentures of public sector companies will no longer be eligible for deduction from an individual's total taxable income.
So far, up to Rs 12,000 of your interest income from these instruments could be deducted from your total taxable income. An additional income of Rs 3,000 from government securities was similarly exempted.
A Finance ministry release says since Section 80L has been scrapped, tax payers are advised to keep this in mind while filing returns for the assessment year 2006-07. Otherwise, they might face an interest levy or penalty.
