Taxation on same FD during two financial year(Tax year)

[rextg]

If I book an FD (in Slice) on today that matured on 6 th April 2026. How will the taxation works on this FD?
1.Will the interest taxed this financial year or next year?
2. Or will the interest taxed partially in both years?

Asking since I won't pay tax this year but for sure next year. So if it is taxed next year the I will invest in debt fund.

 

[hender]

If I book an FD (in Slice) on today that matured on 6 th April 2026. How will the taxation works on this FD?
1.Will the interest taxed this financial year or next year?
2. Or will the interest taxed partially in both years?

Asking since I won't pay tax this year but for sure next year. So if it is taxed next year the I will invest in debt fund.

2 things
1- TDS
2- Personal Income Tax.
What's you concern ?

 

[aniketkr.sharma]

2 things
1- TDS
2- Personal Income Tax.
What's you concern ?

I think both tds will be deducted from FD & while filing the AIS will also count fd.

Correct me if I am wrong

 

[hender]

I think both tds will be deducted from FD & while filing the AIS will also count fd.

Correct me if I am wrong

For the financial year 2025-26, interest income up to ₹50,000 from fixed deposits (FDs) is TDS-free for regular citizens, and up to ₹1 lakh for senior citizens.

 

[2025]

If I book an FD (in Slice) on today that matured on 6 th April 2026. How will the taxation works on this FD?
1.Will the interest taxed this financial year or next year?
2. Or will the interest taxed partially in both years?

Asking since I won't pay tax this year but for sure next year. So if it is taxed next year the I will invest in debt fund.

1. Next year. (Depends on when it matures or breaks) Take a smaller duration FD if u want it to be reflected this year.
2. Not partial, applicable only based on the withdrawal date or maturity.

Further, there are two kinds of FDs. The above answer is correct for a single payout. If you opt for a quarterly/ monthly payout, then it has to be paid as and when you receive the interest. Opting for an accrual basis may not be a good idea, but it can also be done.

You decide where to invest, how to invest, and how to claim during the filing of the income tax return.

 

[panchabhut]

Normally, interest is considered on accrued basis, FY wise. Depends on the practice followed by the bank also. Most banks issue interest certificate considering Interest for the year on accrued basis, and accordingly report to AIS. Check your 26AS and AIS for confirmation. Govt organisations like Post Office reports only on paid basis, but you can declare on accrued basis while filing returns.

 

[Trust Me]

If I book an FD (in Slice) on today that matured on 6 th April 2026. How will the taxation works on this FD?
1.Will the interest taxed this financial year or next year?
2. Or will the interest taxed partially in both years?

Asking since I won't pay tax this year but for sure next year. So if it is taxed next year the I will invest in debt fund.

Answer: #2.

Income will be calculated by the bank pro-rata for each FY, and they will issue Interest and/or TDS certificate as applicable in both FYs. You'd have to report in the ITR accordingly.
.

 

[raghumahajan]

It will be counted towards taxation for both years for their respective interest..
Depending on the amount TDS will be ducted as mentioned below:

For the financial year 2025-26, interest income up to ₹50,000 from fixed deposits (FDs) is TDS-free for regular citizens, and up to ₹1 lakh for senior citizens.

Moreover, while filing ITR, you must add into income for the respective's yearly interest and TDS(if deducted) in tax paid.