banner_ad

Income tax on maturity value of term deposit

Tax queries 587 views 5 replies

I had deposited 2 laks as term deposit for 3 yrs in 03/12 which matured in 03/15. So, will it be taken as my income in FY14-15?  The principal amount and the interest for 3 yrs has been credited to my SB account.

Replies (5)

There are 2 ways of computing interest.

1) At the end of each financial year - Ask the bank for an interest certificate and include

    the interest accured during the financial year and pay the tax.

2) After maturity - Add the total interest to your income & pay the tax.

The first method is preferable because it may lead to less tax to be paid in most cases.

If you use the second method - It will result in a higher total income after maturity due to adding of total interest.

I would like to know whether the principle amount ie. 2 laks also taxable in the FY, or  only the acquired interest taxable

 

 

only interest income is taxable

If u r an employee, then the deposit amount is out come of ur salary, which is taxable or not depend on the net taxable salary. on the other hand if u r doing business, then it is out come of ur receipts, again which is taxable or not depend on ur net taxable income.

Hence, deposit amount is not taxable, based on the above.

U wud hv claimed deduction u/s 80C for investing FD..Condition is u shud not withdraw for 5 yrs. If u violate that rule, how can u escape on maturity?? Upon maturity that is also taxable

But in reality if u hv salary income, u can escape by not declaring as the chances of getting caught is v less.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details