Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Tax liability on Recurring Deposit

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2011 In the month of April 2011, One RD in my name will mature. The contribution was Rs.5000/- for 120 months @9.75%. The maturity amount would be around Rs.10,18,000/- . My present income is around Rs.3 Lacs (salary)per annum.

What would be the Tax implication on the RD maturity proceeds ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

04 March 2011 Generally interest on RD is taxable and to be offered under the head of income "income from other sources". Accrued interest to be offered for taxation yearly or the entire interest at maturity is to be offered in the year of maturity depending on the method of accounting regularly followed by the assessee.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now