Semi fixed deposit account

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2018 There is a scheme in my saving account that if balance cross limit of Rs. 50000 then bank keep the excess amount as fixed and pay interest @ 7% which is higher than saving bank interest rate.. Now my question is interest income will be taxable as saving bank interest or fixed deposit interest because 80tta is only for saving bank interest?

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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30 March 2018 The interest on sweep in/sweep out deposits above Rs.50000 will be income from Fixed deposits and the Actual interest credited for the SB balance will be income from savings account.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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30 March 2018 Income from FDs as mentioned above is wholly taxable whereas income from savings account is exempt upto Rs.10000 per year per assessee

Expert : Anonymous

Expert : Anonymous (Expert)

30 March 2018 Your account is auto sweep a/c & amt received on fdr created out of excess amt is not eligible for 80TTA deduction.

Expert : Anonymous

Expert : Anonymous (Expert)

30 March 2018 Your account is auto sweep a/c & amt received on fdr created out of excess amt is not eligible for 80TTA deduction.

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