john (LEARNER) (549 Points)
05 June 2010Fixed deposit of Rs. 20000/- For a period of 5years for F.Y.9-10 made on 6Jan10, to avail 80C deduction.
interest on the same for F.Y.9-10 Received Rs.6000/-
Now Rs. 20000/- can be claimed as deduction u/s 80C for A.Y.10-11
Q. The interest-ACCRUED amt of Rs.6000/- is taxable or exempt for A.Y.10-11
or it is taxabe at the time of maturity?
Prejith
(Pursuing CA)
(92 Points)
Replied 06 June 2010
I think the interest accrued will be taxable under the head "Income from other sources".
CAclubindia
