Ever thought you might have to pay tax on income you are yet to receive? You are, and in your favourite instrument – the good old bank fixed deposit – at that.
In bank FDs, one has to pay tax on the interest earned at the end of a financial year even if the interest would be paid at a later date, or maybe years later.
Suppose you have made an FD of Rs 50,000 for four years. You will have to pay tax on the liable interest for all the financial years it spans, even though the interest amount would come into your hands only at the end of the four-year tenure.
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http://moneybhai-investors.blogspot.com/2008/02/now-you-have-to-pay-taxe…
why we have to pay the tax
ishaq.khan87@ya... 46 weeks 2 days 4 hours 53 min ago
why we have to pay the tax on the intrest we didn’t get yet