TAX for interest on FD

POSTED BY Kundan Kumar ON March 28, 2013 12:52 pm COMMENTS (3)

Hi Manish,

My Fixed deposits are maturing in the next FY 2013-14 creted in FY 2012-13, Should I have to pay tax in lieu of the interest gained through FD in the FY 2012-13 or at maturity i.e FY 13-14?

One more question : If my bank did not deduct TDS at maturity, The total interest eared in a financial year minus 10k should be considered for paying tax?? and what will come under the heading ‘Income from other sources’ in that case.

Ex: I got 30k as interest including savings account in FY 2012-13, What should be mentioned under “Income from other sources:?

Regards

KK

3 replies on this article “TAX for interest on FD”

  1. Dear Kundan, in case of RD, yes interest is fully taxable. The only difference lies for TDS, as RD accounts are not subject to TDS.

    Thanks

    Ashal

  2. Kundan Kumar says:

    Thanx for the response Sir,

    The same rule is for RD also I supose?

  3. Dear Kundan, the interest amount from SB account only is tax free up to the limit of 10K. Any thing more than this & you w’d have to pay tax on SB Interest for excess amount. The 10K tax free interest limit is not applicable to FD interest, hence any amount as interest from FD is taxable.

    Please ask your bank to provide the break up of interest for your FD in current FY & next FY & accordingly add that break up interest into your income from all sources & pay tax accordingly.

    Thanks

    Ashal

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