Hi,

I did not find a similar question on this or any forum and hence I’m posting this.

I had invested

• How much?- -> 50000 in an FD
• When? –> in December 2012 when I was still a student.
• For how many days? –> 555 days
• Rate of interest –> 9% p.a. compounded monthly.
• Maturity date –> June 2014
• Interest earned –> of around 7300.

Since the amount was less than 10000, TDS was not done by the bank.

Until July 2013, I was a student and had no income; and hence was not liable to pay tax.

From July 2013 onwards, I fall under the 10% income tax slot as my annual income is above 5 lakhs.

Given the above facts, my understanding is that this year I should pay the tax only for the interest earned in the period April 2013-March 2014. Is this correct?

If yes, can some guide me on how to determine the interest earned in that financial year alone so that I add that to my total income and pay tax only on that amount?

If not, can some enlighten me as to where I am going wrong?

Thank you for your help.