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TERM DEPOSIT UNDER SECTION 80C

Tax queries 3264 views 5 replies

SSA JI

Ca Final

1970 Points Joined January 2008

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

Replies (5)

Akhil Gupta

Manager F&A

856 Points Joined August 2007

INTEREST ACCRUED ON TERM DEPOSIT UNDER SECTION 80C IS TAXABLE AS INTEREST UNDER THE HEAD INCOME FROM OTHER SOURCES.

THE MATURITY AMOUNT INCLUDES PRINCIPLE AMOUNT INVESTED AND THE INTEREST ELEMENTS ONLY, BOTH OF THEM ARE EXEPT FROM TAX.

INTEREST ACCRUED ON ABOVE TERM DEPOSIT U/S 80C WILL NOT BE QUALIFIED AS REVINVESTMENT AND HENCE NOT ELIGIBLE FOR DEDUCTION UNDER SECTION 80C.

Harpreet

* * * * * *

1670 Points Joined March 2008

agreed wid mr. akhil gupta

Guest

AGREE WITH AKHIL

CA Amit Kumar Khaitan

Research Analyst

360 Points Joined March 2007

Yes agreed..

We are still not under the EET scheme..

Amit Gupta

Loosening Myself

1508 Points Joined January 2009

Originally posted by : Akhil Gupta
	INTEREST ACCRUED ON TERM DEPOSIT UNDER SECTION 80C IS TAXABLE AS INTEREST UNDER THE HEAD INCOME FROM OTHER SOURCES. THE MATURITY AMOUNT INCLUDES PRINCIPLE AMOUNT INVESTED AND THE INTEREST ELEMENTS ONLY, BOTH OF THEM ARE EXEPT FROM TAX. INTEREST ACCRUED ON ABOVE TERM DEPOSIT U/S 80C WILL NOT BE QUALIFIED AS REVINVESTMENT AND HENCE NOT ELIGIBLE FOR DEDUCTION UNDER SECTION 80C.