Fd interest

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FCA Shilvi Khandelwal (Querist)
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20 July 2011 Sir,
if there is a FD for a long term then what is the treatment 4 matured amount in curret nd DTC... If any special treatment then what is long term period for FDs....

Will maturity amt of a long term FD consider as capital gain...

CA Navin Jain

CA Navin Jain (Expert)
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20 July 2011 maturity amt of a long term FD can not consider as capital gain.

In the case of company Interest on FD is taxable on accrual basis.

and other cases assessee can opt the both option either of accrual or cash basis

Zeeshan

Zeeshan (Expert)
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20 July 2011 Dear Shilvi,
Please understand the fact that the FD is not a Capital Asset as such.

Further source money of the Fixed Deposit has already been taxed in the year in which it was earned (it may have exempt also).

Therefore maturity amount is not taxable as such. Only interest earned on the above is taxable as explained by Navin above.

However if the FD was done for tax exemption u/s 80 and matured within the lockin period then only the maturity amount will be taxable in the hands of recipient as it would have been taxed if no deduction would have been allowed.

Hope resolved the query.

FCA Shilvi Khandelwal

FCA Shilvi Khandelwal (Querist)
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29 July 2011 Sir,
today, a news about ca course has been published....... Is CA dgree considered as post gradution....??
If yes then it is considered dat we hav qualify gradution and post gradution...... There will no need to do B.Com and M.Com...... Is it true......???

Plz explain....

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