Deduction
This query is : Resolved
abhishek jain
(Querist)
24 May 2012
Amount received on maturity of time deposit would be exempt or not ? if the same has been allowed as deduction u/s 80C
24 May 2012
The interest on tax saving FDR is taxable on accrual basis.
The principal amount is not taxable.
The principal amount is not taxable.
CA CS Amit S. Kedia
(Expert)
24 May 2012
There is no income earned at the time of maturity of TD/FD. Actually, What you are getting at that point of time is what you have invested earlier.
Interest on FD/TD is accrued every year and is taxable in that particular year. Hence, you are getting tax paid amount at the time of maturity.
Note:- Deduction u/s is available for investment in FD for a minimum period of 5 years maturity but interest is taxable every year.
Interest on FD/TD is accrued every year and is taxable in that particular year. Hence, you are getting tax paid amount at the time of maturity.
Note:- Deduction u/s is available for investment in FD for a minimum period of 5 years maturity but interest is taxable every year.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GST input credit on commercial property
- GSTR-9C filing
- GST ITC as per notification 12/2023- central tax
- Urd purchase entry in tally prime
- How do you manage client document collection and follow-ups in your CA/CS practice?
- Form 144 TDS Return Validation error
- Applicability of tax on invoice
- Advances to related party
- Capital Gains Tax on Inherited Mutual Fund
- Employee secondment
- GSTR9 Annual Return
- LLP audit and disclosure
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
