Tax saving fixed deposit

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Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2016 Dear Expert !

1.In Can Partnership Firm get benefit in TAX saving Fixed Deposit ?

2. In Tax Saving FD , a interest in taxable .. m i right?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 April 2016 1. No.

2. Yes,taxable.

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Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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19 April 2016 Agree with Chackrapani Sir, Partnership firm cannot take tax saver FD as deduction and its Interest will be taxable for every one.

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Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2016 Sir,
after all deducation means (HRA-Conveyance-Professional Tax) i received salary so in which itr should i file itr 1 or itr 2, i confused regarding Standard Deducation limit

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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26 July 2025 Here’s a quick rundown for your questions:

### 1. Can a Partnership Firm get benefit in Tax Saving Fixed Deposit (FD)?

* **No**, partnership firms **cannot claim deduction** under Section 80C for Tax Saving FDs.
* Tax-saving FDs under Section 80C are available **only to individuals and Hindu Undivided Families (HUFs)**.

### 2. Is the interest on Tax Saving FD taxable?

* **Yes**, the interest earned on Tax Saving FD is **fully taxable as income from other sources** in the year it is credited or paid.
* The bank does not deduct TDS on Tax Saving FD interest if the interest is below the threshold but you still have to declare it and pay tax accordingly.

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### Regarding your ITR question for salary income after deductions like HRA, Conveyance, Professional Tax:

* **ITR-1 (Sahaj)** is for individuals with income from:

* Salary/Pension
* One house property (except if there is loss)
* Other sources (excluding lottery, racehorses, etc.)
* Total income up to ₹50 lakhs

* **ITR-2** is for individuals who have income from salary plus:

* More than one house property or loss from house property
* Capital gains
* Income from foreign sources
* No business income

**Standard Deduction** is available for salaried individuals, currently ₹50,000 (this may vary by year).

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### So,

* If you only have salary income (with standard deduction, HRA, conveyance, professional tax) and no capital gains or multiple house properties, file **ITR-1**.
* If you have capital gains, multiple house properties, or foreign income, file **ITR-2**.

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If you want, I can help you choose the exact ITR form if you share more about your income sources!

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