Thank you - I had FDs (also known as certificate of deposit) in India. These FDs provided monthly interest payouts (thats how I requested) and I was reporting this interest income every year.
But last year I chose to do early maturity (pre-maturity) as I needed the funds. This resulted in me getting an amount less than the principal (because of penalty charges).
So, for example, if I had a INR 100,000 certificate of deposit for 6% interest (monthly payout) for 5 years, I was reporting the INR 6000 every year. Because I wanted to withdraw the principal before maturity, I received say INR 95,000, a INR 5000 loss.
How is this 'loss' to be reported? Can it be used to reduce total interest income from other FDs? If possible, I would like to read more about it. Thanks.
