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.

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