Do I need to pay tax for accumulated money of past 5 years?

Tax queries 262 views 3 replies

Siva Reddy

Product Analyst

24 Points Joined May 2016

I have been investing 80% of my salary (post income tax deductions) in local chit fund for last five years and I got all the money back from chit fund this month.

Total money that I got back from chit fund is around 25 lakhs.

Do I need to pay tax for the amount which I got back from chit fund? If yes, how much tax do I need to pay and is there any way that I can reduce the tax payment?

Thanks in advance and I look forward for your response.

Replies (3)

Abhishek Ranjan Singh

Managing Director and Founder of ARS Sol

6670 Points Joined November 2008

No, Tax is not applicable on total amount. you have to pay tax only on intrest paid on your deposit.

Abhishek Ranjan Singh
ARS Solutions
www.arssolutions.co.in
+919022838615

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sravan

article student

86 Points Joined October 2014

No, The whole amount received I.e; 25 lacs is not taxable.. Only the income earned i.e; interest income earned on deposit is taxable under INCOME FROM OTHER SOURCES..
Such income taxable at normal slab rates..

p.subrahmanyam

accountant

101 Points Joined November 2011

Originally posted by : Abhishek Ranjan Singh
	No, Tax is not applicable on total amount. you have to pay tax only on intrest paid on your deposit. Abhishek Ranjan Singh ARS Solutions www.arssolutions.co.in +919022838615 Note : If you find our reply useful. Please Score us by clicking on "THANK USER"