Ostroff, Fair and Company
*Ostroff, Fair and Company>>>India Taxes

Fixed deposits are exemt from income tax..but when the fixed deposit matures is the income from it taxable ??


Fixed deposits are exemt from income tax..but when the fixed deposit matures is the income from it taxable ??

WHEN THE FD MATURES YOU RECEIVE TWO THINGS:
1. Your principal amount
2. Your interest

Interest is taxable, not the principal.

Now, Interest is not eligible for deduction u/s 80L as these are taken out in the new finance act.
Fixed Deposits per se are not exempt from tax, However when you invest in FD for a specified period (5 yrs or more) you can claim deduction of that amt (up to 100k) under Chapter VI-A (80-C). However the interest on it would be taxable on accrual basis.
Tags
United Kingdom Taxes Spain Taxes Singapore Taxes Mexico Taxes Ireland Taxes India Taxes Germany Taxes Canada Taxes Australia Taxes Small Business
Related information
  • I make an investment to an offshore company. How about tax issues for the income earned by that?
  • How to invest to save tax in present situation?
  • I am investing 4000 Rs. in ULIP OF UTI .it well get matured on 30-5-2006.What will be tax implications?
  • Tax liability of a foreign citizen working in USA on his income outside USA under double taxation avoidance.?
  • How to disable/enable all services at a time in winxp?
  • How to calculate INCOME TAX 2006-2007 financial year?
  • My income is less than rs.1oo,ooo/- p.a. i am a professional. am i supposed to pay service tax?
  • Can anyone send me SOX material.?
    • 　

    Finance Categories--Copyright/IP Policy--Contact Webmaster