1) My mother, a retired school mistress has opened Fixed Deposit with some banks in 2010 with a tenure of 36 months ( maturity in 2013) and the matured amount would be available on maturity in 2013.
What will be the tax treatment on the interest earned? Whether the interest earned on FD shall be deemed to be income for the particular FY on pro- rata basis or whether the entired maturity amount will be treated as income in 2013?
2) In there any exemption for reinvestment in FD for the matured amount with the same bank?
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