Want to make fd of rs. 1 crore

This query is : Resolved

Amit (Querist)
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25 December 2014 Dear All

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.

Rupesh Jain

Rupesh Jain (Expert)
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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.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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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.

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MEHUL SHAH

MEHUL SHAH (Expert)
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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