24 May 2012
There is no income earned at the time of maturity of TD/FD. Actually, What you are getting at that point of time is what you have invested earlier.
Interest on FD/TD is accrued every year and is taxable in that particular year. Hence, you are getting tax paid amount at the time of maturity.
Note:- Deduction u/s is available for investment in FD for a minimum period of 5 years maturity but interest is taxable every year.
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