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Int received on f.d

harsh (student) (125 Points)

15 April 2016

what is the tax treatment of interest received on f.d ? can an assesee avail deduction under sec 80 ? if yes, how much?

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5 Replies

Shubham Gupta (Business Consultants) (2077 Points)
Replied 15 April 2016

it will be added as a part of other income.

Deduction u/s 80c can be taken for interest on saving bank upto 10000Rs

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Suresh (Learning) (155 Points)
Replied 15 April 2016

Interest received on FD is taxable ( Income from Other Sources). Assessee can avail deduction under Sec 80C (Upto 1.5 Lacs) only on Tax Saver Fixed Deposits ( lockin period 5-years).

harsh (student) (125 Points)
Replied 15 April 2016

Then why 80C ? Why not 80 TTA ??

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 15 April 2016

Deduction u/s 80TTA is available to individual Tax payer or HUF only upto 10000/- or actual interest earned (whichever is less) in Bank savings accounts only, sec 80TTA is not applicable on time deposit or Fixed deposit

Ruchi (CA) (1410 Points)
Replied 15 April 2016

Interest received on FD is taxable under Income from Other sources. 80C deduction is available when you invest in FD and not on interest on FD. And Sec 80TTA is applicable on interest from Savings account and not FD interest. Hence it is fully taxable.