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.
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
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