Topic: I have invested in 5 year tax saving fixed deposits last year

Will the interest accrued be taxable or the same is also exempt, just like PPF.

This message was edited 1 time. Last update was at 30/06/2009 09:41:46

The amount invested in 5 year fixed deposit will be eligible for exemption and the same is rightly claimed by you but the interest accrued there on shall definitely be taxable it has no co-relation with PPF, interest on PPF is specifically exempt under section 10.

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I have read on http://www.taxworry.com that if any one withdraws from Fixed Deposits within 5 years, then the amount withdrawn will be taxed as income in the year in which such withdrawal was made . However, if following amount shall not be taxed
1. interest which is included in total income of any year.
2.any amount received by the nominee or legal heir of the assessee, on the death of such assessee, other than interest, if any, accrued thereon, which was not included in the total income of the assessee for the previous year or years preceding such previous year

sanjay

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