Fixed deposit

This query is : Resolved

Ram (Querist)
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02 December 2014 Hello everyone,

I have a query regarding Term Fixed Deposit.
If I invest Rs. 50,000 this year, for a period of 5 years, say the total maturity amount is Rs. 75,000 at the end of 5th year.

The interest earned here is Rs. 25,000.
Per year, it is Rs. 5,000.
If interest exceeds Rs. 10,000 per year, then it is taxable. But in this case, interest is only Rs. 5,000 per year for 5 years. So this means there is no tax I need to pay.
Am I right?
If yes, should I declare this in the form, while calculating the tax payable. And also, what is the amount I should declare, and how much tax is payable on this amount.

Thank you so much.

Amol S Joglekar

Amol S Joglekar (Expert)
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02 December 2014 Please make a distinction between TDS and Income tax.
Since your interesst income is less than TDS limit, TDS may not be done.
But you need to include this income in your Income Tax Return and pay the income tax as per your SLAB

Ram

Ram (Querist)
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04 December 2014 Not clear Amol. My tax slab is 10%.

Could anyone explain.

Ram

Ram (Querist)
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04 December 2014 Not clear Amol. My tax slab is 10%.

Could anyone explain.

Amol S Joglekar

Amol S Joglekar (Expert)
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04 December 2014 Every year, you will show in your income tax return, interest on bank deposits...Rs.5000.

Since you claim that your SLAB is 10%, you pay income tax on this at 10%...i.e.Rs500
This is calles as SELF assessment tax.

Ram

Ram (Querist)
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16 December 2014 ok thank you for the reply.

Amol S Joglekar

Amol S Joglekar (Expert)
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16 December 2014 You are most welcome.
.
.

Ram

Ram (Querist)
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16 December 2014 Should I show the actual principal amount also?

Amol S Joglekar

Amol S Joglekar (Expert)
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16 December 2014 To whom you want to show the PRINCIPAL?
In ITR there is no any column for showing PRINCIPAL.

Message likes : 1 times

Ram

Ram (Querist)
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17 December 2014 thank you so much Amol.

Amol S Joglekar

Amol S Joglekar (Expert)
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17 December 2014 You are most welcome.
.
.

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