When do I pay the income tax for a 10 yr Fixed Deposit interest ?

POSTED BY nanda.kandi ON September 21, 2014 10:37 pm COMMENTS (2)

HI All, I have a confusion about the fixed deposit calculations. Could anyone please clarify the same for me. Lets assume I have 20 Lakhs cash with me at the moment.So I am going for a FD for 10 years here is how the maturity amount would look like as per some online website with FD calculators show me

Principal Invested in FD – 2000000 After Maturity 10 years(Max FD period)  @ 9.0 intrest rate

Total Maturity Amount – 4870378

Total Intrest Payable is – 2870378

Note: I wanted to know if this calculations are right and if yes then is there any TAX amount that i would have to pay for the FD\’s or after the maturity is done. Awaiting a reply. Thanks.

2 replies on this article “When do I pay the income tax for a 10 yr Fixed Deposit interest ?”

  1. nsabhyankar says:

    However, is the tax payable each year on the interest for that year or at the end of maturity period on actual withdrawal?

  2. Hemanth Chandra says:

    Yes, interest on FD is taxable. You have to pay tax on the interest income @the rate in which your tax slab is there….

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