HDFC Ltd fastened deposit: Can I avail revenue tax profit on curiosity?

I’m a senior citizen and have made fastened deposit with HDFC LTD (NOT HDFC BANK). Please let me know whether or not the curiosity revenue acquired from HDFC Limited is eligible for exemption inside Rs. 50000 or not.

As per Section 80TTB an individual, who has accomplished 60 years and who’s a resident of India for revenue tax functions, is entitled to assert a deduction of Rs. 50,000/- in respect of curiosity earned by him from Post workplace, Bank and Cooperative Societies in the course of the yr.

This deduction is offered in respect of curiosity acquired from deposits of any nature made with these entities. So one can declare this deduction in respect of saving financial institution curiosity, curiosity on fastened deposits, curiosity on recurring deposits. Even you may declare this deduction for curiosity earned on deposits made below Senior Citizen Saving Scheme below this Section inside this total restrict of Rs. 50,000/-.

Since this deduction is offered for curiosity acquired from specified entities and since HDFC Limited doesn’t fall in these classes, you can not declare this deduction. Had the deposits been with HDFC financial institution and never HDFC restricted, you’ll have been entitled to this deduction below Section 80TTB for curiosity acquired from HDFC financial institution. Since curiosity below Section 80TTB is exempt upto Rs. 50,000 is exempt, the resident senior residents take pleasure in the next restrict of Rs. 50,000/- for the aim of TDS on curiosity below Section 194A.

Balwant Jain is a tax and funding knowledgeable and could be reached at jainbalwant@gmail.com and @jainbalwant on his twitter deal with.

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