Taxabilitly of vikas cash certificate: syndicate bank

Hello,

If a person invests say Rs.50000 on 15/12/2009 in VCC(Vikas Cash Certificate) maturity of whose is of 3 years i.e. it'll be given back on 15/12/2012 and the maturity amount amount is Rs. 61571.97 , what will be its taxability?

Will the total interest i.e. Rs.11571.97 be taxed in AY 13-14 or will a certain portion of interest be charged in each of those 3 years?

Just FYI, I'll tell you how the maturity amt is obtained:

50000 * 1.0175^12

i.e. 7% interest rate p.a. compounded quarterly