Income tax for FD of multiple years

[prathamesh.g.j]

I just wanted to know how tax is applied when we have more than 1 year FD

for example if I have 3L FD with 10% interest for 3 yesrs . So will I add income for ITR every year I.e around 30k even TDS will not be deducted even for a non-senior citizen or it will be added up after 3 years I.e around 1L

If it's added after maturity I.e after 3years how can I save tax or TDS on it.

Second question if there is FD with minor account of person aged 15 will the income for that FD is added with parent Income or it will be seprate for child

 

[ShavirB]

Ideally, FD Interest Income should added Every Year. Interest Income threshold for TDS deduction is Rs. 50,000, so if you add Income Every Year it'll be below the threshold limit.

FD for Minor Account will be clubbed with Parent Income

 

[abhimarda]

I just wanted to know how tax is applied when we have more than 1 year FD

for example if I have 3L FD with 10% interest for 3 yesrs . So will I add income for ITR every year I.e around 30k even TDS will not be deducted even for a non-senior citizen or it will be added up after 3 years I.e around 1L

If it's added after maturity I.e after 3years how can I save tax or TDS on it.

Second question if there is FD with minor account of person aged 15 will the income for that FD is added with parent Income or it will be seprate for child

You should be collecting Interest Certificate from your bank post March month for the previous financial year and that should match the interest income as appearing in AIS and TIS which you can download from IT site after logging in. You will know what income from FD your bank has reported each year which will be interest of that particular financial year only.

FD income of minor will be clubbed with parent however a deduction of Rs.1500/- per child per year is available for minor's income under section 10(32) of Income Tax.

 

[zacobite]

I just wanted to know how tax is applied when we have more than 1 year FD

for example if I have 3L FD with 10% interest for 3 yesrs . So will I add income for ITR every year I.e around 30k even TDS will not be deducted even for a non-senior citizen or it will be added up after 3 years I.e around 1L

If it's added after maturity I.e after 3years how can I save tax or TDS on it.

Second question if there is FD with minor account of person aged 15 will the income for that FD is added with parent Income or it will be seprate for child

yes yes.. income every year / tax every yr / added to parents income.. TDS will not be cut of interest is below 40k p. a

 

[Prince]

For Interest Income, there are two portions
1. Interest credited to Bank - Should be shown in ITR, As per Bank Statement matching with Interest Certificate
2. Interest Accrued - Should be shown in ITR, As per Interest Certificate.

Both Earned and Accrued Interest should be equal to or grater than Interest as per AIS & TIS.

and for Interest Income of Minor Child, it will be clubbed in parent income, which is having higher taxable Income.