Term Deposit under Section 80c
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 July 2010
RESPECTED SIR/MADAM
WOULD YOU PLEASE TELL ME THE TAX TREATMENT OF INTEREST ACCRUED ON TERM DEPOSIT UNDER SECTION 80C,AND AS WELL AS THE TAX TREATMENT OF MATURITY AMOUNT ,
WHETHERN INTEREST ACCRUED ON ABOVE TERM DEPOSIT U/S 80C QUALIFIED AS REVINVESTMENT AND ELIGIBLE FOR DEDUCTION UNDER SECTION 80C.
PLEASE REPLY AS SOON AS POSSIBLE
THANKS
WOULD YOU PLEASE TELL ME THE TAX TREATMENT OF INTEREST ACCRUED ON TERM DEPOSIT UNDER SECTION 80C,AND AS WELL AS THE TAX TREATMENT OF MATURITY AMOUNT ,
WHETHERN INTEREST ACCRUED ON ABOVE TERM DEPOSIT U/S 80C QUALIFIED AS REVINVESTMENT AND ELIGIBLE FOR DEDUCTION UNDER SECTION 80C.
PLEASE REPLY AS SOON AS POSSIBLE
THANKS
21 July 2010
interest is taxable and on end term the principle invested also liable to included in income of py in which such amount is received.
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21 July 2010
1) Interest on these term deposits shall be liable to tax under the Act, on the basis of annual accrual or receipt, depending upon the method of accounting followed by the assessee.
(2) The tax on such interest shall be deducted in accordance with the provisions of section 194A or section 195 of the Act.
Ref :- CBDT Notification No. 203/2006
Principal amount received on maturity is tax free.
Accrued interest will not qualify as investment u/s 80C.
(2) The tax on such interest shall be deducted in accordance with the provisions of section 194A or section 195 of the Act.
Ref :- CBDT Notification No. 203/2006
Principal amount received on maturity is tax free.
Accrued interest will not qualify as investment u/s 80C.
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