POSTED BY September 23, 2013 2:52 pm ONE COMMENT
ONI’m in the 30% tax bracket; Assuming I invest 1 Lakh in a corporate FD for 5 years @ 10% rate – the maturity amount comes to about Rs 1.61 Lakhs. How is the tax calculated at the end of maturity – is it 10.3% on the total interest earned in 5 years (Rs 16K tax on Rs 61,000 interest)?
Also, is the above calculation valid for investing amount up to 10 lakhs?
Thank You.
2021 © Jagoinvestor.com All Right Reserved
Dear Vibhor, as it’s corporate FD, any interest more than 5000 Rs. in a FY is liable to TDS. hence in each FY, you w’d have to pay that 30% Tax. Calculate your final maturity now.
Thanks
Ashal