BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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15%
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20%
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25%
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Exempt
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Detailed explanation-1: -Interest income is money earned by an individual or company for lending their funds, either by putting them into a deposit account in a bank or by purchasing certificates of deposits. Interest expense, on the other hand, is the opposite of interest income.
Detailed explanation-2: -Generally, taxes at source would be deducted on such sum at the time of payment to you itself at the rate of 30%. Even if taxes have not been deducted, you may pay taxes on such income based on rates applicable to the income slab you fall under.
Detailed explanation-3: -Any income which is not chargeable to tax under any other heads of income and which is not to be excluded from the total income shall be chargeable to tax as residuary income under the head “Income from Other Sources”. Basis of Charge [Sec. 56]:
Detailed explanation-4: -Is fixed deposit interest taxable in India? According to the Income Tax Act, 1961, interest on FDs is treated as ‘income from other sources’ and hence, is fully taxable.