Need A Financial Product › Forums › Tax Savings › Is interest from NSC tax free when claimed under 80C This topic contains 1 reply, has 2 voices, and was last updated by Surendra Kumar 2 years, 5 months ago. Viewing 2 posts - 1 through 2 (of 2 total) Author Posts August 17, 2014 at 4:41 pm #46901 Surendra KumarMember Someone was telling me that if I invest in NSC and claim it for deduction under section 80 C then only the interest on NSC will be tax free otherwise I need to pay tax on interest income from NSC. Is this person correct? August 19, 2014 at 7:48 am #46902 Virendra ShahMember No, this person is not at all correct. No matter, whether you have invested in NSC to claim it as deduction under section 80 C or not, interest on NSC is always taxable. Author Posts Viewing 2 posts - 1 through 2 (of 2 total) You must be logged in to reply to this topic.