My boss want to make a Fixed Deposit of Rs. 1 Crore, but he is confused. He thinks that if he made a F.D. of 1 Crore then he might be liable for the Income tax @ 30% of that 1 crore. He is having a construction business. this 1 crore is all white money, receipt from gov dept against construction work.
Please tell me whether he is liable for tax of F.D. amount. Want want to invest those 1 Crore so that we can earn some interest.
25 December 2014
IF HE HAVE INCOME OF RS.1 CRORE OF ALL YEAR FROM FIRST TO TILL DATE THEN INTT WILL BE TAXABLE IN HIS HAND. OTHERWISE RS. 1.00 CRORES ALSO INCLUDES IN HIS INCOME. DUE TO DEPTT WILL SEE THE FUND SOURCES.
25 December 2014
If this 1 crore is white money on which already applicable tax has been paid or accumulated exempted money no need to pay tax once again. Only interest received on this deposit will be taxable.
28 December 2014
Only Interest received shall be taxable. Instead of FD , He can go for FMP options and claim indexation benefit and end up paying lesser tax. Regards MEHUL SHAH mehul@raseshca.com
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