Hi all,
I have a query on tax payment/management on interest earned through RD as follows:
I understand that there is no TDS for the interest earned on RD in a bank and paying the tax is the investor’s responsibility. The query is, If the RD spans for more than 2 or 3 Financial Years, then, is there an option of paying the tax at the end of the tenure (on maturity) or it has to be paid yearly on accrual basis similar to that for term deposit interests of more than 1 year?.
Your valuable opinion will be highly appreciated.
Thanks & regards,
GBanari