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Topic: Is fixed deposits interest taxable?  XML
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shakeel


Offline

pls tell
Kartik Varma


Location: New Delhi
Offline

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


iTrust helps you find the Best Home Loan in India.
saleemoddin


Offline

Interest earned on fixed deposit is taxable.

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

vikram.mohite


Location: Pune
Offline

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


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


saleemoddin wrote:Interest earned on fixed deposit is taxable.
Anonymous


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


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


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


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


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
Anonymous


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


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


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?
Abhi7288


Offline

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
vicky_admin


Offline

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


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..
Anonymous


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??
Anonymous


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


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.
Anonymous


shakeel wrote:pls tell
Anonymous


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"
Anonymous


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


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


Yes Fixed Deposit interest is txable.

Click here to Compare fixed deposit interest rates
Anonymous


Anonymous wrote:
saleemoddin wrote:Interest earned on fixed deposit is taxable.
Anonymous


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


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


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


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.
Anonymous


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...
Anonymous


yes!
Anonymous


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
Chris Taylor


Offline

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

Compare FD India Interest "Rates in 2011"
Anonymous


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.
jekhallii


Offline

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.

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Anonymous


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


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.
Anonymous


[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


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


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?
Anonymous


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


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Adk109


Offline

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

Gurgaon Property | Noida Property | Bangalore Property | Chennai Property | Pune Property
[Email]
Anonymous


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


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.
Anonymous


Anonymous wrote:[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


i want to do fix deposit amount of 800000 in icici bank.with rate of intrest 9.75..for 1yr.how much of tax will be reduced.pls let me know
Anonymous


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Anonymous


I made fixed deposit for 18 months from April 2011 to Oct 2012. I requested Bank not to recover tax as I will reflect the interest in my tax. return. Since I am physically getting interest in Oct 2012 on maturity, can I reflect whole interest for 18 months in my return for 2012-13 (A.y 2003-14) or reflect interest being acrued by bank upto 31.3.2012 in return for 2011-12(A.Y 2012-13).
R N Rao
banyanfinancialadvisors


Offline

Anonymous wrote:i want to do fix deposit amount of 800000 in icici bank.with rate of intrest 9.75..for 1yr.how much of tax will be reduced.pls let me know


Hi,
10% TDS shall be deducted by the bank while paying you interest. On remaining about you would have to pay Income Tax depending upon your tax bracket.

Regards
Banyan Financial Advisors

You can reach us at www.banyanfa.com
Our blog site is http://insight.banyanfa.com/
Anonymous


Are the retired persons dependents on Interest amount has to pay I Tax on Interest.?
Anonymous


Hi,
yes even retired person need to pay tax depending upon the amount of Interest which they receive. Upto 250,000 there is no tax to be paid. If you think that your interest from bank would be more than 10K per year, you must go to the bank and fill a specified form every year instructing the bank not to deduct TDS as you may not need to pay tax on your income.

Regards
BFA
Anonymous


Suppose if my interest earned thru fd is Rs.11000 in a financial year (individual) how much will be the tds deducted? tell me the amount not the percentage.
Anonymous


the bank has deducted tds from the interest on fixed deposit.

my query is whether the interest amount is to be added while computing total income i.e income from other sources
the net income is above 10 laks
Anonymous


Anonymous wrote:the bank has deducted tds from the interest on fixed deposit.

my query is whether the interest amount is to be added while computing total income i.e income from other sources
the net income is above 10 laks
Anonymous


when do i get a reply to my query sent at 12.33.30
Anonymous


pl clarify

fixed deposit interest rs 1000
tds deducted rs 100

what amount to add to income from other sources
.the rate of income tax on the balance how to show tds deduction. i am on 30% slab
Anonymous


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


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
banyanfinancialadvisors


Offline

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


You can not escape taxability of interest on FD, unless your income in India is less than the minimum tax slab (currently 2 lacs). However, if you a non resident, NRE FDs are tax free (http://insight.banyanfa.com/nre-fixed-deposit/).

You may want to check out http://insight.banyanfa.com/fixed-deposits-how-to-benefit/ which explains multiple options which are available while investing in FDs which end up boosting the overall return which you may get from a FD.

Regards
BanyanFA

This message was edited 1 time. Last update was at 10/07/2012 22:26:01


You can reach us at www.banyanfa.com
Our blog site is http://insight.banyanfa.com/
Anonymous


I want to knowwhat is the return amountif i deposit 16000 for 15 years in sahara india.
Anonymous


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


If we have Salary Income (above taxable limit) and Interst income from bank. Is it mandatory to give the Interest
earned details to the Employer to issue Form 16. Is the Interest income taxable or exempted?
Anonymous


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Anonymous


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


if a person is having only a interest income for rs 80000/- only , no other income is there , then whether he has to income tax?
Anonymous


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Anonymous wrote:the bank has deducted tds from the interest on fixed deposit.

my query is whether the interest amount is to be added while computing total income i.e income from other sources
the net income is above 10 laks
Anonymous


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