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Interest on tax savings term deposit

Babua Banerjee (Accountant Junior Tax Practitioner) (123 Points)

03 July 2016

I have invested Rs. 100,000/- to Central Bank of India's 5 years Tax Savings Term Deposit. Interest Accrued (yearly) is eligible for deduction u/s 80C ?

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6 Replies

CA SACHIN (practice) (115 Points)
Replied 03 July 2016

No. interest is not allowed as deduction u/s 80 C.

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 04 July 2016

Yes deduction is not available but interest is taxable.

sivasai venkatesh (Student CA IPC / IPCC) (30 Points)
Replied 04 July 2016

yes interest is not allowed under 80c only the investment 100000 is eligible for deduction in 80c for that financial year only

manoj (student) (5205 Points)
Replied 04 July 2016

1) If you can fill form 15G/15H as per applicablity

2) If bank is deducting tax

if either condition satisfying than you should show that interest amount as INCOME TAX Is silent on interest amount

roopa (ARTICLE) (22 Points)
Replied 04 July 2016

Interest accrued on tax saver FDR is taxable income and no deduction u/s 80c is allowable under income tax act for intt. on tax saving FDR. Only principal is allowed as deduction u/s 80c.