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3 ways to earn more money out of your fixed deposit


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Naveen Kumar
TAX ON FD INTEREST
by Naveen Kumar on Nov 04, 2014 04:31 PM

Please correct yourself on the subject.
1.FD interest paid is always taxable.
2.TDS @10% on the interest paid with with PAN number given by the Depositor,will be shown in 26AS of the PAN holder.

3.TDS @ 20% without the PAN number ,cannot be claimed.
4.No TDS with submission of 15G/15H forms by the Depositor,but PAN number is mandatory and Details are passed on to the IT Dept.
So.always be a Honest Tax Payer and Pay Your Taxes.

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ravi vaidya
Misleading and Unethical
by ravi vaidya on Nov 03, 2014 10:20 PM

Even if the interest earned on FD is less than Rs. 10,000 / - p.a. in one bank, one is supposed to declare all sources of income...thus all interest earned from all FD gets counted as income..is added to your total income, and then subject to tax as per your tax slab....26AS maintains a record...so kindly verify before posting such articles

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Surendra Varma
FDs
by Surendra Varma on Nov 03, 2014 09:34 PM

The first thing the writer advises is "do enough research" but published this article without doing enough research herself! A very misleading article, telling us to follow a mirage.

The banks report the interest earned to the IT department, which appears on Form 26AS, even if no TDS was deducted. So, in your IT return, you end up paying the tax anyway.

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Communal Award
And
by Communal Award on Nov 03, 2014 09:34 PM

cleartax. in has better information

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Kannan
Split FD
by Kannan on Nov 03, 2014 05:31 PM

This suggestion is not at all valid as each branch generates a customer id, which would be the same for all the split FDs. So the Branch would be required to calculate the total interest earned by a client rather than individual FD as it is their responsibility to deduct tax at source and most of the branches do deduct tax unless Form 15G/H is given and the client takes the responsibility.

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Anand YNI
3 ways to earn more money out of your fixed deposit
by Anand YNI on Nov 03, 2014 03:10 PM

Rediff, pl, publish the photo of the child which wrote this article!

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anil sharma
This point is wrong
by anil sharma on Nov 03, 2014 02:45 PM  | Hide replies

2. Split your FD

TDS (tax deductible as source) at 10 per cent is charged on fixed deposits if the interest income exceeds Rs 10,000 in a financial year. The tax liability of TDS is determined at the branch level.

If you want to avoid TDS, you can split your fixed deposits, that is, instead of opening one FD account you can open FD accounts in different branches of the bank and divide the amount among these.

TDS can also be avoided by opening fixed deposits in different banks.

You may avoid TDS, however you cannot avoid TAX. Tax has to be paid in IT return by declaring "how much interet earned" in each FD. So, again, wrong information propagated by rediff.....

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Indian Prince
Re: This point is wrong
by Indian Prince on Nov 03, 2014 04:42 PM
To build upon this, i would suggest open multiple deposits with first holder as your mom, wife, kid, dad, etc and joint holder has you. If your parents are retired and wife does not work, then using FORM 15G you can avoid TDS and Tax both. Also if your parents are above 60 you can earn additional interest ;-)

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ramchandra murthy
Re: This point is wrong
by ramchandra murthy on Nov 03, 2014 05:02 PM
wrong aboslutely wrong adviser is stuck in 2011 agree with sharmaji

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