In tax saving FD only interest is taxable or final amount?

Page no : 2

Rajakumaaran (Dr) (30 Points)
Replied 29 November 2016

You have declared the investment as your income from the year of investment say 2015-16. So it is your asset earned during that year. If you have not invested in Taxsaver FD, it would have been taxed for that year. Inthat case will you be paying tax for the same"earnings" next year? The same holds good in your case. You will pay tax only for the interest. The bank will deduct TDS @ 10% if the interest exceeds 10000/- per year even for Taxsaver FDs. Hope this helps

1 Like

gunturboy26 (Self Employed) (217 Points)
Replied 01 December 2016

Originally posted by : Rajakumaaran
	You have declared the investment as your income from the year of investment say 2015-16. So it is your asset earned during that year. If you have not invested in Taxsaver FD, it would have been taxed for that year. Inthat case will you be paying tax for the same"earnings" next year? The same holds good in your case. You will pay tax only for the interest. The bank will deduct TDS @ 10% if the interest exceeds 10000/- per year even for Taxsaver FDs. Hope this helps