Achi news desk-
New Delhi2 days ago
- copy link
Private sector lender IDFC First Bank has changed the interest rates on fixed deposits (FD). After this change, when making an FD in the bank, common citizens will get annual interest ranging from 3.0% to 8.0%.
At the same time, the bank offers 0.50% more interest to the elderly compared to general citizens. In such a situation, the bank will give them annual interest ranging from 3.50% to 8.50%. Changes in interest rates have been made on FDs of less than Rs 2 crore. The new rates apply from today ie March 21.
Tax has to be paid on the interest received from FD as well
The interest received from FD is fully taxable. Whatever interest you earn on FD in a year is added to your annual income. Based on the total income, your tax slab is determined. Interest income earned on FD is considered as “Income from Other Sources”.
- If your income is less than Rs 2.5 lakh in a year, the bank does not deduct TDS on fixed deposits. However, for this you will have to submit Form 15G or 15H. In such a situation, if you want to save TDS, then definitely submit Form 15G or 15H.
- If your interest income from all FDs is less than Rs 40,000 in a year, then TDS is not deducted. Whereas if your interest income is more than Rs 40,000, then 10% TDS will be deducted. In case of not providing PAN card, the bank can deduct 20% TDS.
- This limit is for deducting TDS on interest income exceeding Rs 40,000 for persons below 60 years of age. At the same time, income up to Rs 50 thousand from FD of seniors above 60 years is tax free. If the income is more than this, 10% TDS is deducted.
- If the bank has deducted TDS on your FD interest income and your total income is not subject to income tax, then you can claim the TDS deducted while filing taxes. This will be credited to your account.
