• Interest on FD

I have FD in bank of 100000 Rs. of interst of 7.75% PA.My question is interest paid by bank is taxable or what is the amount exemption from tax in FD.
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Asked 4 years ago in Income Tax from Jamnagar, Gujarat

There is no exemption for chargeability of the Interest on Fixed Deposit and the entire amount is taxable.

However, if this is the only source of your income (or) your income from all sources of income is below taxable limits, (ie Rs. 2.50 Lakhs), you dont have to pay any tax on the same..

B S Sridhar
CA, Chennai
43 Answers
20 Consultations

5.0 on 5.0

Interest paid by bank on FDR's is taxable in full.

Vijay Kapoor
CA, Delhi
14 Answers
1 Consultation

3.8 on 5.0

The interest on FD is assessable under the head: " Income from other sources" and there is no specific exemption for it. You will have tax liability if the income exceeds the threshold limit.

However,if you are investing in FD with a nationalized bank for 5 years, you will get deduction upto Rs 1.5 Lakhs invested during the year u/s 80C of the Income Tax Act. There can be no loan against FD and no pre mature withdrawal is allowed.

B Vijaya Kumar
CA, Hyderabad
891 Answers
67 Consultations

5.0 on 5.0

Interest received on FDR's with bank is taxable. If you are holding the FDR in the individual name then the same is taxable under the head income from other sources. Interest received on FDRs are not eligible for exemption.

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
110 Consultations

5.0 on 5.0

If total interest exceed to Rs. 10,000/- tds @ 10% will be applicable to avoid the same you need to apply for 15G/15H form which is available in you bank.

CA, Mumbai
3 Answers

Not rated

Yes its fully taxable however interest on SB account is exempt upto Rs.10000/-

Rajesh Kabra
CA, Thane
9 Answers
1 Consultation

4.3 on 5.0

The bank or the post office deducts tax while crediting the interest in case the interest being credited or likely to be credited exceeds Rs. 10,000/- in a year.

Therefore in your case , TDS is not applicable as amount is less than 10K

Please let me know incase you require further assistance

Deepak Rathore
CA, New Delhi
31 Answers
5 Consultations

4.3 on 5.0

Interest from F.D is taxable. However, TDS need not be deducted by the bank

Shashank Surana
CA, Chennai
60 Answers
4 Consultations

4.3 on 5.0

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