Deduction


This query is : Resolved 

24 May 2012 Amount received on maturity of time deposit would be exempt or not ? if the same has been allowed as deduction u/s 80C

24 May 2012 The interest on tax saving FDR is taxable on accrual basis.

The principal amount is not taxable.

24 May 2012 There is no income earned at the time of maturity of TD/FD. Actually, What you are getting at that point of time is what you have invested earlier.

Interest on FD/TD is accrued every year and is taxable in that particular year. Hence, you are getting tax paid amount at the time of maturity.

Note:- Deduction u/s is available for investment in FD for a minimum period of 5 years maturity but interest is taxable every year.


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro



Answer Query



Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details