Tax on FDs

Alchemist

Administrator
Staff member
#2
If an FD matures in 3 years, do you show all the interest in the 3rd year or do you show it year by year?
It's up to the depositor. Both are acceptable.

Most banks give yearly interest statements and so it is not difficult for a bank depositor to calculate his annual tax liability. If your bank doesn't send you an annual interest statement, you can always request for one.

For instruments like NSC, it's a different case because depositors don't get annual statements.
 
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