If my interest is paid out only at maturity, will I still need to pay income tax on my accrued interest?

Fixed Deposits (FDs)
1

If my interest is paid out only at maturity, will I still need to pay income tax on my accrued interest?

2

Let’s understand this with an example:

If you book an FD for a 3-year period that gives you yearly interest of ₹10,000 (between April and March) with interest payout at maturity, each year, ₹10,000 will be added to your taxable income as “income from other sources” based on the accrued interest.

So, regardless of whether the interest is paid out in a given financial year or at maturity, the interest earned is added to your taxable income.

For any questions, please feel free to reach out to us at help@stablemoney.in, and our experts will guide you further.