Topic: Is fixed deposits interest taxable?

pls tell

This message was edited 2 times. Last update was at 10/07/2008 09:37:53

Yes, interest earned on fds is taxable, after Rs. 10,000 of interest accrued per annum. Tax is deducted at source, from the interest on fixed deposits, as per the income tax act 1961
TDS rates, after the Rs. 10,000 exemption are: individuals – 10% plus cess on top of this
However, if your income falls below the taxable limits, you may submit form 15H to request exemption
TDS liability is determined at branch level. It takes into account interest on aggregate amount of deposits in a particular branch
To gain advantage, you might want to consider opening different fds at different branches or different banks additionally, 5 year Fixed Deposits in a bank is eligible for a deduction under section 80c up to Rs 1 Lakh. however, the interest on this is not tax deductible.
Compare fixed deposit rates in India.

This message was edited 1 time. Last update was at 16/12/2009 09:03:03

Interest earned on fixed deposit is taxable.

Yes FDs interest is taxable. If any investor is investing into a 10% FD, his real rate of return post inflation and post TDS will be really minuscule. Hence, think twice befor investing in a FD. Other FDs are more used for parking temporary cash before investing them for long term. Moreover, in the current scenario, when all macro economic factors are pointing towards rate hike, it is not wise to invest in long term dated security, instead it will be more suitable to invest for small intervals and see the movement of interest rate.

1 sahara india agent asked me for investing rs.18000/- for 15 yrs in 'housing bond' by sahara india then on maturity i will get rs. 103000,is it right decision

saleemoddin wrote:Interest earned on fixed deposit is taxable.

is FDR interest for the period of more than 5 yrs is taxable...??

yes, if int, amount of fd exceeds Rs10000 than it is taxable

Anonymous wrote:yes, if int, amount of fd exceeds Rs10000 than it is taxable

Completly - Invest 70000-/- per year in PPF - Invest another 30000 in ELSS Mutual Fund - So investing 100000-/- under section 80 C is complete. Invest in only these 2 categories & you will be able to manage better - PPF account locked for 15.0 years wnereas ELSS is locked for 3 years. But buy ELSS for 30 years & if required you can close account in ELSS after 3.o years anytime & no charges/ penalty will be levied.

See the best calculation is:-
1. Invest 70000-/- per year through PPF for 15.0 Years - You will receive exact 20,52,699.81.
SAVE THIS MONEY FOR YOUR CHILDREN EDUCATION

2. Invest 30000-/- yearly OR 2500-/- monthly SIP for ELSS MUTUAL FUND for 30.0 Years - You will receive
5600000-/-. SAVE THIS MONEY FOR YOUR RETIREMENT.

3. INVEST IN TERM INSURANCE PLAN ONLY & THAT TOO FROM LIC. BUY 50.0 LACS INSURANCE.
LIC IS VERY EXPENSIVE BUT THE CLAIMING % IS AROUND 95 & THE BEST AMONG ALL INSURANCE COMPANIES. SEE YOU SHOULD NEVER MIX INSURANCE WITH INVESTMENT. INSURANCE ARE MEANT TO BE VERY EMOTIONAL IN WORST SCENARIO. BUY TERM INSURANCE OF AROUND 50.0 LAKHS.
NEVER EVER INVEST IN ULIP. BUY TERM PLAN AT 1 SHOT & IT WILL COST 1.3 LAKHS FOR YOU.

TAKE TERM PLAN NOT FOR SAVING TAX. INVEST 1.3 LAKHS FOR 50.0 LAKHS SUM ASSURED FOR 35.0 YEARS. THE AMOUNT OF 1.3 LAKHS IS SINGLE PREMIUM PAYABLE AT 1 STROKE. ALSO YOU WILL NOT RECEIVE ANY MONEY ON SURVIVAL. BUT THIS IS THE BEST POLICY ONE TAKE TAKE INTO ACCOUNT FOR FAMILY'S SAFETY. SEE IN MY PREVIOUS BLOG I HAVE MENTIONED THE INVESTMENT IN PPF & ELSS MUTUAL FUND FOR TAX BENIFIT.

1. THINK FOR YOURSELF FIRST
2. THINK FOR YOUR FAMILY
3. THINK FOR YOUR RETIREMENT

i want to deposit rs.2500 in fixed deposits in bank.want to know hw much it matures after 10 years.will it be benefit to put in FD?

I want to fix nearly Rs. 80,000/- for 5 years in a bank. so I want to ask that whichsoever interest on this amount will make, On that interest amount will there pay tax or not

Anonymous wrote:i want to deposit rs.2500 in fixed deposits in bank.want to know hw much it matures after 10 years.will it be benefit to put in FD?

i want to deposit rs.2500 in fixed deposits in bank.want to know how much it matures after 10 years.will it be benefit to put in FD?
i want to ask that interest on this amount is taxable or not

Yes Fixed deposit is texable f any investor is investing into a 10% FD, his real rate of return post inflation and post TDS will be really minuscule. Hence, think twice befor investing in a FD.Visit here your Best fixed deposit.

Anonymous wrote:TAKE TERM PLAN NOT FOR SAVING TAX. INVEST 1.3 LAKHS FOR 50.0 LAKHS SUM ASSURED FOR 35.0 YEARS. THE AMOUNT OF 1.3 LAKHS IS SINGLE PREMIUM PAYABLE AT 1 STROKE. ALSO YOU WILL NOT RECEIVE ANY MONEY ON SURVIVAL. BUT THIS IS THE BEST POLICY ONE TAKE TAKE INTO ACCOUNT FOR FAMILY'S SAFETY. SEE IN MY PREVIOUS BLOG I HAVE MENTIONED THE INVESTMENT IN PPF & ELSS MUTUAL FUND FOR TAX BENIFIT.

1. THINK FOR YOURSELF FIRST
2. THINK FOR YOUR FAMILY
3. THINK FOR YOUR RETIREMENT

I have a query here, hope you can give more clarity on this:

As you said,
2. Invest 30000-/- yearly OR 2500-/- monthly SIP for ELSS MUTUAL FUND for 30.0 Years - You will receive
5600000-/-. SAVE THIS MONEY FOR YOUR RETIREMENT.

For 30 years plan and Rs 2500/- per month, LIC Jeevan Saral offering 56,45,000/-. Here another benifit is that (In case of death, 250 times monthly premium + Total Premium paid - (1st years premium & Extra premium paid ) + LA if any payable).. so that we are covering insurance of amout (2500/- * 250), minimum of 625000 as well)

I am planning to take Jeevan Saral but after reading your comment, I am in confusion, please share your thought on this..

Hi all, writing services
I have a netspend account and I want to know if its possible to deposit by wire transfer or bank transfer to my netspend card or account. I will be transfering funds from/ via Emirates Bank Dubai. Will there be any problems on this??

If interest amounts above the 10000/- then only the condition FD will be taxable.And TAX rate is 10% of the interest amounts.

Kartik Varma wrote:Yes, interest earned on fds is taxable, after Rs. 10,000 of interest accrued per annum. Tax is deducted at source, from the interest on fixed deposits, as per the income tax act 1961
TDS rates, after the Rs. 10,000 exemption are: individuals – 10% plus cess on top of this
However, if your income falls below the taxable limits, you may submit form 15H to request exemption
TDS liability is determined at branch level. It takes into account interest on aggregate amount of deposits in a particular branch
To gain advantage, you might want to consider opening different fds at different branches or different banks additionally, 5 year Fixed Deposits in a bank is eligible for a deduction under section 80c up to Rs 1 Lakh. however, the interest on this is not tax deductible.
Compare fixed deposit rates in India.

shakeel wrote:pls tell

Under section 80C, you can get a tax deduction of up to Rs 1 lakh per annum if you invest in a 5 year FD. However, the interest you earn on the deposit will be taxed at your eligible tax rate and added under head "Other Income"

http://www.itrust.in/content/personal-finance/What-you-must-know-about-FDs

Anonymous wrote:1 sahara india agent asked me for investing rs.18000/- for 15 yrs in 'housing bond' by sahara india then on maturity i will get rs. 103000,is it right decision

Yes Fixed Deposit interest is txable.

Click here to Compare fixed deposit interest rates

Anonymous wrote:

saleemoddin wrote:Interest earned on fixed deposit is taxable.

Anonymous wrote:is FDR interest for the period of more than 5 yrs is taxable...??

vikram.mohite wrote:Yes FDs interest is taxable. If any investor is investing into a 10% FD, his real rate of return post inflation and post TDS will be really minuscule. Hence, think twice befor investing in a FD. Other FDs are more used for parking temporary cash before investing them for long term. Moreover, in the current scenario, when all macro economic factors are pointing towards rate hike, it is not wise to invest in long term dated security, instead it will be more suitable to invest for small intervals and see the movement of interest rate.

Anonymous wrote: Completly - Invest 70000-/- per year in PPF - Invest another 30000 in ELSS Mutual Fund - So investing 100000-/- under section 80 C is complete. Invest in only these 2 categories & you will be able to manage better - PPF account locked for 15.0 years wnereas ELSS is locked for 3 years. But buy ELSS for 30 years & if required you can close account in ELSS after 3.o years anytime & no charges/ penalty will be levied.

See the best calculation is:-
1. Invest 70000-/- per year through PPF for 15.0 Years - You will receive exact 20,52,699.81.
SAVE THIS MONEY FOR YOUR CHILDREN EDUCATION

2. Invest 30000-/- yearly OR 2500-/- monthly SIP for ELSS MUTUAL FUND for 30.0 Years - You will receive
5600000-/-. SAVE THIS MONEY FOR YOUR RETIREMENT.

3. INVEST IN TERM INSURANCE PLAN ONLY & THAT TOO FROM LIC. BUY 50.0 LACS INSURANCE.
LIC IS VERY EXPENSIVE BUT THE CLAIMING % IS AROUND 95 & THE BEST AMONG ALL INSURANCE COMPANIES. SEE YOU SHOULD NEVER MIX INSURANCE WITH INVESTMENT. INSURANCE ARE MEANT TO BE VERY EMOTIONAL IN WORST SCENARIO. BUY TERM INSURANCE OF AROUND 50.0 LAKHS.
NEVER EVER INVEST IN ULIP. BUY TERM PLAN AT 1 SHOT & IT WILL COST 1.3 LAKHS FOR YOU.

Anonymous wrote:TAKE TERM PLAN NOT FOR SAVING TAX. INVEST 1.3 LAKHS FOR 50.0 LAKHS SUM ASSURED FOR 35.0 YEARS. THE AMOUNT OF 1.3 LAKHS IS SINGLE PREMIUM PAYABLE AT 1 STROKE. ALSO YOU WILL NOT RECEIVE ANY MONEY ON SURVIVAL. BUT THIS IS THE BEST POLICY ONE TAKE TAKE INTO ACCOUNT FOR FAMILY'S SAFETY. SEE IN MY PREVIOUS BLOG I HAVE MENTIONED THE INVESTMENT IN PPF & ELSS MUTUAL FUND FOR TAX BENIFIT.

1. THINK FOR YOURSELF FIRST
2. THINK FOR YOUR FAMILY
3. THINK FOR YOUR RETIREMENT

Can you please tell me the company name from whicic i can invest 1.3 Lacs for 50 Lacs sum assured for 35 years.

I wanted to do a Fix Deposit for 30 years. Can you advise which is the best bank for the same. Also can i directly do a Fix Deposit with RBI?
Please Answer...

yes!

shakeel wrote:pls tell

I WANT TO FIXED DEPOSIT WITH U.CO. BANK FOR RS 900000/-FO TWO YEARS
IS IT TAXABLE IF YES AND IF WILL SUBMITT FORM 15H THEN TDS WILL BE DEDUCTED OR NOT

the answer is definitely yes, your deposits interest is taxable of about 10% of your interest.

If an NRI Open and Ordinary account in bank and make Ordinary FD of 20 Lakh with Interest rate 9.25%
what will be the TDS and also it is legal.

Yes it is taxable but before that it is necessary to know that how much money you are investing because according to the Government rules if get interest in one year on your money that is above 10,000 then it is taxable.

Anonymous wrote:1 sahara india agent asked me for investing rs.18000/- for 15 yrs in 'housing bond' by sahara india then on maturity i will get rs. 103000,is it right decision

Anonymous wrote:

Anonymous wrote:TAKE TERM PLAN NOT FOR SAVING TAX. INVEST 1.3 LAKHS FOR 50.0 LAKHS SUM ASSURED FOR 35.0 YEARS. THE AMOUNT OF 1.3 LAKHS IS SINGLE PREMIUM PAYABLE AT 1 STROKE. ALSO YOU WILL NOT RECEIVE ANY MONEY ON SURVIVAL. BUT THIS IS THE BEST POLICY ONE TAKE TAKE INTO ACCOUNT FOR FAMILY'S SAFETY. SEE IN MY PREVIOUS BLOG I HAVE MENTIONED THE INVESTMENT IN PPF & ELSS MUTUAL FUND FOR TAX BENIFIT.

1. THINK FOR YOURSELF FIRST
2. THINK FOR YOUR FAMILY
3. THINK FOR YOUR RETIREMENT

Can you please tell me the company name from whicic i can invest 1.3 Lacs for 50 Lacs sum assured for 35 years.

[b][i][u]

Anonymous wrote:

Anonymous wrote:i want to deposit rs.2500 in fixed deposits in bank.want to know hw much it matures after 10 years.will it be benefit to put in FD?

Anonymous wrote:If an NRI Open and Ordinary account in bank and make Ordinary FD of 20 Lakh with Interest rate 9.25%
what will be the TDS and also it is legal.

Anonymous wrote: Completly - Invest 70000-/- per year in PPF - Invest another 30000 in ELSS Mutual Fund - So investing 100000-/- under section 80 C is complete. Invest in only these 2 categories & you will be able to manage better - PPF account locked for 15.0 years wnereas ELSS is locked for 3 years. But buy ELSS for 30 years & if required you can close account in ELSS after 3.o years anytime & no charges/ penalty will be levied.

See the best calculation is:-
1. Invest 70000-/- per year through PPF for 15.0 Years - You will receive exact 20,52,699.81.
SAVE THIS MONEY FOR YOUR CHILDREN EDUCATION

2. Invest 30000-/- yearly OR 2500-/- monthly SIP for ELSS MUTUAL FUND for 30.0 Years - You will receive
5600000-/-. SAVE THIS MONEY FOR YOUR RETIREMENT.

3. INVEST IN TERM INSURANCE PLAN ONLY & THAT TOO FROM LIC. BUY 50.0 LACS INSURANCE.
LIC IS VERY EXPENSIVE BUT THE CLAIMING % IS AROUND 95 & THE BEST AMONG ALL INSURANCE COMPANIES. SEE YOU SHOULD NEVER MIX INSURANCE WITH INVESTMENT. INSURANCE ARE MEANT TO BE VERY EMOTIONAL IN WORST SCENARIO. BUY TERM INSURANCE OF AROUND 50.0 LAKHS.
NEVER EVER INVEST IN ULIP. BUY TERM PLAN AT 1 SHOT & IT WILL COST 1.3 LAKHS FOR YOU.

How can I get in touch with you in order to understand more if u dont mind please and take your help in investments?

iwant to invest rs800000 inmy wife name who is a housewife whethere interest received will be taxable to me

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Anonymous wrote:vjzhffhe

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I think Kartik had given perfect details, he also shared the resource for that. Thank you so much Kartik keep sharing such detailed information.

Anonymous wrote:

Anonymous wrote: Completly - Invest 70000-/- per year in PPF - Invest another 30000 in ELSS Mutual Fund - So investing 100000-/- under section 80 C is complete. Invest in only these 2 categories & you will be able to manage better - PPF account locked for 15.0 years wnereas ELSS is locked for 3 years. But buy ELSS for 30 years & if required you can close account in ELSS after 3.o years anytime & no charges/ penalty will be levied.

See the best calculation is:-
1. Invest 70000-/- per year through PPF for 15.0 Years - You will receive exact 20,52,699.81.
SAVE THIS MONEY FOR YOUR CHILDREN EDUCATION

2. Invest 30000-/- yearly OR 2500-/- monthly SIP for ELSS MUTUAL FUND for 30.0 Years - You will receive
5600000-/-. SAVE THIS MONEY FOR YOUR RETIREMENT.

3. INVEST IN TERM INSURANCE PLAN ONLY & THAT TOO FROM LIC. BUY 50.0 LACS INSURANCE.
LIC IS VERY EXPENSIVE BUT THE CLAIMING % IS AROUND 95 & THE BEST AMONG ALL INSURANCE COMPANIES. SEE YOU SHOULD NEVER MIX INSURANCE WITH INVESTMENT. INSURANCE ARE MEANT TO BE VERY EMOTIONAL IN WORST SCENARIO. BUY TERM INSURANCE OF AROUND 50.0 LAKHS.
NEVER EVER INVEST IN ULIP. BUY TERM PLAN AT 1 SHOT & IT WILL COST 1.3 LAKHS FOR YOU.

How can I get in touch with you in order to understand more if u dont mind please and take your help in investments?

Can you please give us detail about PPL and ELSS, from where its originated and to whom should i contact to get the same?

Anonymous wrote:

Anonymous wrote:TAKE TERM PLAN NOT FOR SAVING TAX. INVEST 1.3 LAKHS FOR 50.0 LAKHS SUM ASSURED FOR 35.0 YEARS. THE AMOUNT OF 1.3 LAKHS IS SINGLE PREMIUM PAYABLE AT 1 STROKE. ALSO YOU WILL NOT RECEIVE ANY MONEY ON SURVIVAL. BUT THIS IS THE BEST POLICY ONE TAKE TAKE INTO ACCOUNT FOR FAMILY'S SAFETY. SEE IN MY PREVIOUS BLOG I HAVE MENTIONED THE INVESTMENT IN PPF & ELSS MUTUAL FUND FOR TAX BENIFIT.

1. THINK FOR YOURSELF FIRST
2. THINK FOR YOUR FAMILY
3. THINK FOR YOUR RETIREMENT

I have a query here, hope you can give more clarity on this:

As you said,
2. Invest 30000-/- yearly OR 2500-/- monthly SIP for ELSS MUTUAL FUND for 30.0 Years - You will receive
5600000-/-. SAVE THIS MONEY FOR YOUR RETIREMENT.

For 30 years plan and Rs 2500/- per month, LIC Jeevan Saral offering 56,45,000/-. Here another benifit is that (In case of death, 250 times monthly premium + Total Premium paid - (1st years premium & Extra premium paid ) + LA if any payable).. so that we are covering insurance of amout (2500/- * 250), minimum of 625000 as well)

I am planning to take Jeevan Saral but after reading your comment, I am in confusion, please share your thought on this..

Please recheck Jeevan Saral Guaranteed maturaty amount, I dont believe the above quoted amount. I guess You are a LIC agent.

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