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HDFC monthly income deposit

vivekanand (partner) (48 Points)

26 October 2010

I have an HDFC monthly income deposit. Of course the monthly income is subject to TDS. I wish to know whether on termination of the monthly scheme, the deposit amount of Rs. 60,000/- when I put it back into my bank account is totally exempt from income tax; since the deposit amount is not income to begin with?

Is the deposit amount totally exempt under section 10 of the IT act, when put back into the Savings Bank account? Can it be considered income which is not part of your total income? I think it must be. Please some expert here, can clarify this in great detail; this query can apply to all monthly, annual income schemes upon their termination.

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5 Replies

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 26 October 2010

Hi,

Monthly or annually interest payable deposits income is taxable.Other principal amount is already taxed.don't worry this 60k will not be taxed again ,At the time of maturity/termination.

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vivekanand (partner) (48 Points)
Replied 26 October 2010

Originally posted by : O.D.SHARMA
	Hi, Monthly or annually interest payable deposits income is taxable.Other principal amount is already taxed.don't worry this 60k will not be taxed again ,At the time of maturity/termination.

Thank you for your reply. But still this incoming 60K amount will have to be mentioned in the IT return form? If yes, I suppose it will have to be listed under Schedule EI, then under which of the following heads? Is it no.5 Others? Please do answer.

Schedule EI Details of Exempt Income (Income not to be included in Total Income)

1 Interest income
2 Dividend income
3 Long-term capital gains from transactions on which Securities Transaction Tax is paid
4 Net Agriculture income /any other income for rate purpose
5 Others, including exempt income of minor children

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 26 October 2010

No ,No need to put 60K into future IT return.This amount already taxed and part of your earnings/Capital.Interest income you have to put will be the interest you are taking monthly in IT return of the year ..

vivekanand (partner) (48 Points)
Replied 27 October 2010

Originally posted by : O.D.SHARMA
	No ,No need to put 60K into future IT return.This amount already taxed and part of your earnings/Capital.Interest income you have to put will be the interest you are taking monthly in IT return of the year ..

Thank you, sir.

No need to mention this amount even in the Scehdule Exempt Income 'Others' category in the IT return form? Would that be OK? I was worried, that is why I was asking.