Tax on maturity amount of fixed deposit

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Ashish Bhalara (Querist)
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02 June 2012 I make a FD of Rs.50000 for 5 year and this amount is exempt from IT, but after maturity of FD, the amount of FD is taxable or not, is there need to mention in IT return a maturity amount of FD?
What is rules of interest of FD & Saving Account?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 June 2012 Interest on FD is taxable which has to be offered for taxation under the head 'income from other sources' either on accrual basis or on receipt basis.
S.B interest is also taxable. But, w.e.f 1/4/2013,deduction for S.B interest up to Rs.10,000/- is allowed vide section 80 TTA of the Income tax Act,1961.

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Ashish Bhalara

Ashish Bhalara (Querist)
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02 June 2012 Thanks to answer but i want to know that after 5 year the FD amount receive in my bank account, so is this amount fully taxable or not? should I mention this maturity amount as a income?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 June 2012 Principal portion of FD is free of tax. No need to show the principal portion as income.

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