I’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.