I received Rs 5 lakh from my father after his death. I have invested this money in fixed deposits and mutual funds and will receive Rs 30,000 as interest from the deposit. Am I required to file my return?
Deepa Ganguli, Ranchi
A lot depends on in which financial year you received the money from your father that you deposited in the FD and when you received the interest. Your income includes income from the fixed deposits by way of interest. If your overall income is below the taxable limit, you will not need to pay any income tax. However, if you have taxable income, then the interest will be added to that and taxed accordingly.
