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aksharma (mr.)     06 March 2017

Must pay tax yearly on income from FD as per IT Rule but may I request tax deduction on maturity

fix deposite for 5 year in bank for 100000 in 2017 FY and I will get suppose 150000 in 2022. How justify deduction of tax in assuming income yearly basis virtually while I got maturity in 2022 FY? I think income tax should deduct on maturity amount that year 10% or 20% as per account.

 1 Replies

CMOHAN KACHROO   17 March 2017

FD for 5 yrs for 1 lakh. Bank will be providing interest in each FY and if that amount is eligible for TDS bank will deductTDS at source atthe end of each FY. Thus the amount of interest provided in the FD A/c will form Interst Income .Rate of TDS will be only 10% but rate of Income Tax will depend upon what is your slab of Income after adding this Interest Income. 10 or 20% or more.

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