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Tax liability on FD amount received as inheritance

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Hemendra Vyas

21 Points Posted on 07 July 2021

Hi,

My father had one FD in which I was nominee.

He did that FD in FY 2020 and passed away in Jan 2021. Maturity of that FD is in Oct 2021.

Do I need to pay tax on interest received?

Thanks

Replies (3)

Quick Summary

If you've inherited a Fixed Deposit (FD) where you are the nominee, you may be wondering about tax liability on the interest earned. While the principal amount of the FD is generally exempt, the interest accrued on it is typically taxable. You will need to declare this interest income in your Income Tax Return (ITR) and pay the applicable tax.