Janaki (Account Assistant) (93 Points)
29 April 2015Hello All,
Can anyone tell me the tax implications for FD s
One of my clients got FD amount arouns Rs.4000000, for which he was nominated by his aunt. After her expiry, He got the amount in his account. But he gave the amount to his cousines by cheque.
So, there is no money is there in his account. So, is there any tax implication on the part of my client? please let me know the same.
Thanks in advacnce...
CA HAYEDAR SHAIKH
(Practice )
(627 Points)
Replied 30 April 2015
Dear Janaki,
Interest on FD is taxable income shown under the head Income from Other sources.
Secondly, your client does not get any amount and any benefit from this, so there is no tax liablity on his part.
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 30 April 2015
Hello,Does his cousin come under the relative definition under Income tax act?
If yes then no issue
if Not then tax will be liable ...
CAclubindia
