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Income tax on FD earned interest

Hi all,

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

 

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