Fixed deposit income

vijay (CA FINAL) (69 Points)

26 March 2017

Fixed Deposit in any private Financial Institute is taxable on accrual or maturity basis?

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Studentsca (CA Practice ) (3577 Points)
Replied 26 March 2017

Income from fixed deposits is taxable in accrual basis.

vijay (CA FINAL) (69 Points)
Replied 27 March 2017

Is Amount received at the time of Maturity is fully taxable under Income from other sources.( FD is made in Sahara)

Studentsca (CA Practice ) (3577 Points)
Replied 27 March 2017

If interest was not taxes previously on accrual basis then the entire interest received at the time of maturity will be taxable now.

vijay (CA FINAL) (69 Points)
Replied 27 March 2017

What about Principal Amount?

Studentsca (CA Practice ) (3577 Points)
Replied 27 March 2017

Principal is not income. It can never be taxed.

vijay (CA FINAL) (69 Points)
Replied 27 March 2017

Ok, that means Principal is already taxed Income. So, again taxing it leads to double taxation.It is correct?

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