IT exepmtions/int. on fixed deposits etc.
AJIT KAWATKAR
(Querist) 15 July 2008
This query is : Resolved
my sister is retired SR CiTIZEN having pension;returns from ppty-fixed depo.-dividends from shares.at present not taxable.she wants to invest in bank's fix-depo. for 5yrs. The plan is like this;-to invest rs5L for 5yrs. to invest the INTEREST EARNED [mothly/Q]in recurring depo. Q.whether int. earned/deposited in the A/C &then directed to RD.would be ADDED to her income &calculated as total income for that yr.&taxed ?if is so kindly advise tax plannig.
Guest
(Expert) 16 July 2008
Even for Sr. Citizen, the interest is taxable, even if it is diverted to RD.
She can claim 80C for only one lakh.