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Mihir Tanna |831 Answers |Ask -Follow

Tax Expert - Answered on Aug 02, 2023

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more

Asked by Anonymous - Jul 13, 2023Hindi

My father had invested in fixed deposits and i was the nominee. after his death the FDs were closed . The FD principal amount along with interest was credited to my saving account. I still need to file income tax return of my father. i want to know that the interest of FDs will be considered as part of my father income or i have to add them to my income and pay the taxes.

Ans: Interest income earned upto the date of death will form part of deceased income.

Interest income earned from date of death till maturity will form part of legal executor (separate PAN)

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Mihir Tanna |831 Answers |Ask -Follow

Tax Expert - Answered on Sep 06, 2022

Question by Vipin - Sep 06, 2022Hindi

I would be grateful if you could provide some clarifications for the given queries: 1) What will be the implications, if the primary holder aged 76 years, encashes the matured FDs? 2) Will there be any tax deduction if the matured FD amount is transferred to the bank and not withdrawn? 3) Will there be a tax deduction if the whole amount (approx 12 to 13 lakh) is withdrawn from the bank? 4) What is the cash withdrawal limit in a year without getting any tax liability? 5) Once the TDS/TCS on the Fixed Deposit is deducted at the bank, then does the bank also charge any tax for the maturity amount deposited in the bank and not withdrawn? 6) Once the TDS/TCS on the Term Deposit is deducted at the post office, then does the post office bank/savings bank also charge any tax for the maturity amount deposited in the bank and not withdrawn?

Ans: Tax is always on the income portion. So in your case, interest income will be taxable on accrual system or cash system (as chosen by you for such Income).

Usually taxpayers offer income on accrual system as per Interest Certificate issued by the bank (irrespective of the fact that interest amount will be credited to bank on maturity).

If you choose not to renew FD, the amount will be credited to your savings account and on that balance also you will earn interest as per rate of interest for savings account. Savings Interest Income is also taxable above Rs 50,000 for senior citizens.

Interest Income is taxable irrespective of the fact you withdraw amount from bank account and bank will deduct TDS on interest in deposit (not on savings interest).

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