Question : Is interest earned on tax-saving fixed deposits also applicable for tax-exemption?
- asked by rahul d
All Answers:
Answer #1
It depends on the scheme. if its ELSS scheme thenno tax, but some schemes provided by iciciprudential etc , they have tax on interest.
- answered by lokesh
Answer #2
If the income you earn for all your deposits heldin a branch is more than Rs 5,000 in a financialyear, Tax will be deducted at source.
- answered by Make me wiser
Answer #3
The interest (not dividend) earned on tax savingdeposits are taxable. If you reinvest the same intax savings schemes again, then they are eligible.Otherwise they are not eligible for taxexemption.In case of NSC, the interest will beautomatically reinvested and the interest amount(for that year) will be treated as a fresh depositand will be treated as 80C deposit. But theinterest will be treated as income and will betaxed.
- answered by N.J.Reddy
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