my mother got 2 cr rupees from her parental property after death of her father, we just put the amount in fixed deposit as we couldnt think of anything else for the time being , it is at 9% for five years , as she is not filling returns as she is a home maker so what will be the tax for the income from this intrest and what will be tax deductable from the source and how that will be adjusted while filling the final return please guide me sir
The interest earned on the Fixed deposit is subject to TDS if that interest crossed INR 10,000 per annum in a bank branch. If you’re mother is a senior citizen (over 60 years of age), then annual income upto INR 2.5 lakhs is tax exempt in a year.
To reduce your mother’s tax liability, we suggest you buy another residential property and also make use of tax saving investments suitable for your mother such as senior citizens savings scheme and 5-year tax saving fixed deposits that give tax deduction upto 1 lakh and also provide regular interest income. The interest earned ts is fully taxable.