Dear All,
I would like to seek your advice on a few incidences, where i wish to know the tax implications:
a) An assessee holds FD certificates. On maturity, if such FD is renewed/reinvested into another FD, will the maturity value of original FD be taxable in the F.Y. of maturity?
b) If interest on FD is reinvested each year, instead of having a credit to the FD holder's savings bank account, will it be taxable on accrual basis, since the assessee did not receive such interest in that F.Y.?
c) If an assessee holds Post office account, pension fund, and on their maturity, converts the maturity value into an FD in a bank, will the maturity value of pension fund and post office account be taxable in the year of maturity?
Thanks in advance. Please feel free to communicate in case the query is ambiguous.
CAclubindia
