Wednesday , 29 March 2017
Home » Taxation » Taxation on Sweep in FD Interest

Taxation on Sweep in FD Interest

2,188 views

taxation

Many of our site visitors has this query – What is the Tax treatment for Interest earned on Sweep in FD ?

When the Swep-in FD is matured or pre-matured at the time of withdrawal, the amount is credited to the Savings Account alongwith interest for that period.

Sweep-In FD is a time deposit like any other Fixed Deposit. The only difference is that it is created automatically & matured / prematured automatically.

The interest from such Sweepin FD will be treated the same way as interest from another regular FD.

The interest earned on fixed deposit (including Sweep in ) will be added to your income under the head ‘Income from other sources’ and taxed as per your slab rate.

As it is a term deposit, Section 80TTA is not applicable to Sweep-In FD.

Section 80TTA is applicable only to savings account where interest income upto Rs 10,000 earned during a financial year can be claimed as exemption.

If you have any queries related to this article or any other personal finance query ( Investment, Taxation etc), please comment below

http://wealth18.com/

About wealth18

The author is a Chartered Accountant and loves to write about Personal Finance, Wealth Management, Taxation etc. Disclaimer - The articles on this website is for informational and knowledge purposes and should not be treated as financial advice, Please consult your financial advisor before taking any investment decision.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

6000 + Subscribers – Subscribe to our New Posts

Copy Protected by Chetan's WP-Copyprotect.