FD Proceeds
This query is : Resolved
19 April 2017
Taxability of FD maturity proceeds along with reference in income tax act? (I am NOT asking about interest, but Principal proceeds)
Nikhil Kaushik
(Expert)
19 April 2017
depends on whether the principal amount is from current year's taxable source or from previous year or it is just from a non-taxable capital source?
The rule is simple the money is taxed in the year it is earned. So if the principal amount will be taxed in the year in which it was first earned or not taxed at all if it was from a non-taxable source such as share capital etc
It won't be taxed again at the time of FD maturity. Only the interest will be taxed.
The rule is simple the money is taxed in the year it is earned. So if the principal amount will be taxed in the year in which it was first earned or not taxed at all if it was from a non-taxable source such as share capital etc
It won't be taxed again at the time of FD maturity. Only the interest will be taxed.
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