If we deposit 1,50,000 in tax saving FD scheme for 5 years, the final amount we will get after 5 years is 2,31,419 (assuming at 7% every year and compounding).
My question is, in the year the FD will be matured, would this final amount of 2,31,419 will be taxable or only the interest 81,419 is taxable. Because the tax expemtion of 1,50,000 under 80C is for the year in which it is deposited and the year it will mature will be 5 years later.
Thank you.
As I understand, interest income alone is taxable as and when accrued.
| Originally posted by : Poornima Madhava | ||
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As I understand, interest income alone is taxable as and when accrued. |  |
Hope it is correct. Thank you for the reply Ms. Poornima.
Only Interest is taxable.
| Originally posted by : shailesh | ||
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Only Interest is taxable. | |
Only interest, then it is great. Thank you for the information Shailesh.
| Originally posted by : Vishal Varun | ||
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only interest is taxable because fd is your investment and not your earning.and it will be part of income of other source. | |
It is income which we are investing into an FD, to save tax. Thank you for the reply Vishal.
5yrs Tax Saver FD invested Under 80C only amount invested is eligible for tax exemption. Interest is Taxable on accural basis every year and not at the end of 5 years.
VK
| Originally posted by : CA. Vinodh Kothari | ||
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5yrs Tax Saver FD invested Under 80C only amount invested is eligible for tax exemption. Interest is Taxable on accural basis every year and not at the end of 5 years. VK |
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I wanted to ask this question too, is interest taxable every year? You have answered this question too.
Thank you very much for the information Mr. Vinodh.
agree with above
thanks & regards
ramanuj
| Originally posted by : CA. Vinodh Kothari | ||
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yes interest is taxable every year subject to your total income is more than taxable limit.VK | |
Thank you for the information Mr. Vinodh.
It's only the interest portion under income from other sources
| Originally posted by : Nihar Ranjan Rout | ||
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It's only the interest portion under income from other sources | |
Thank you for the information Nihar.
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