POSTED BY August 3, 2011 8:04 am COMMENTS (4)ON
Usually I make FD’s for 3 year period and during the maturity time the income earned is going into taxable slab.
For the first 3 years before maturity I am coming into NO TAX slab but during the maturity I am coming into taxable slab.
Does anyone faced this? Are there any ideas to avoid this?
Is this a good idea to make FD for 3 years but interest payable yearly and reinvest this interest into FD again.
Please share your views