Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: TDS :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: VAT RATES :: VAT Audit :: due date for vat payment :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: empanelment :: list of goods taxed at 4%
 
 
« News Headlines »
  How to rectify income tax returns
 Govt extends tax exemption for industry in North East, hilly states
 Should you file revised Income Tax returns; find out here
 Tax Deducted at Source (TDS) in Goods & Services Tax (GST)
 10 companies that blamed GST for soft June quarter
 How will GST impact the Indian economy
 10 days left to file your first GST return. This is how you do it
 What is property tax and how is it calculated…
 File income tax returns in time to carry forward losses
 Missed the deadline to file income tax returns? Here is what you should do
 Who has to report foreign assets in Indian income tax return and how to do it

Go back to FDs, enjoy the tax sops
August, 01st 2006

Investors now have another avenue to park their money in for the medium term and book tax benefits, besides the good old small savings schemes. If they park up to Rs 1 lakh in term or fixed deposits of commercial banks for five years or more, they will be eligible to deduct the amount from their taxable income.

This will place fixed deposits on par with schemes unveiled by the government such as the National Savings Certificate (NSC) and the Public Provident Fund in terms of offering tax breaks. In its edition dated July 25, ET had reported that the government will soon allow tax sops on bank deposits. The tax break on fixed deposits was spelt out by the finance ministry in a notification issued on Monday evening. The move is expected to help banks in building up a stable deposit base, and even lower their cost of fund. In the last monetary policy, RBI pointed out that banks should try to build a durable, retail deposit.

Unlike the schemes with administered interest rates, banks will have pricing freedom. But they can no longer sell term products as one with the flexibility of withdrawals before maturity.

As in the case of these small savings schemes, investors placing money in term deposits and planning to take a tax deduction will have to reconcile to a lock-in period of five years. The government notification says that no term deposit can be encashed before five years from the date of investment. The ceiling on investment is Rs 1 lakh.

The interest earned on these deposits will attract tax either on an accrual basis or on receipt basis.

If the deposit is made with a joint holder, then the tax benefit will be available only to the first holder. A host of banks, who were waiting for the notification, are now expected to unveil new term deposit products to attract investors.

In FY06, the government permitted investments of up to Rs 1 lakh in designated investments like PPF, NSC, repayment of the principal on housing loans and payment of education fees to be deducted from the taxable income under Sec 80 C of the Income Tax Act. However, early this year, banks managed to lobby successfully to include term deposits in this list of eligible investments.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions