Fixed deposit

This query is : Resolved

vishal sharma (Querist)
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21 March 2016 i have A FD in bank from more than 5 years so whether interest part is taxable or not if not than where i have to show in my return under which section if taxable than whether i have to show it under the head of income from other source or where

Ankur Singhal

Ankur Singhal (Expert)
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21 March 2016 Dear
Investing in tax saving FD is allowed as deduction under section 80C.
But interest earned on such FD is taxable under the head other sources.

vishal sharma

vishal sharma (Querist)
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21 March 2016 Sir
How do we know whether it is tax saving or not?

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Ankur Singhal

Ankur Singhal (Expert)
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21 March 2016 Dear
For a FD to be tax saving FD following conditions should be fulfilled.

as term deposit—
(a) for a fixed period of not less than five years with a scheduled bank; and
(b) which is in accordance with a scheme framed and notified, by the Central Government, in the Official Gazette for the purposes of this clause.
Explanation.—For the purposes of this clause, "scheduled bank" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), or a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank, being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);