Save TDS on FD interest | How to Save TDS on Fixed Deposit interest in Tamil| FD interest TDS rate

 

How to save TDS on Fixed Deposit interest? Fixed Deposits are most common type of savings instrument in India. However Tax is Deducted at Source on Fixed Deposit interest rate received from banks and other institutions. How is TDS calculated and what are ways to avoid TDS being deducted from our FD interest. There are 3 ways to save TDS on Fixed Deposit interest. 1) Time your FD start date 2) Spread FD to different banks but tax liability still applies 3)Submit form 15G/form 15H st start of financial year What is the rate of withholding TDS on Fixed Deposit interest The TDS rate is 20% on FD interest when PAN card is not submitted If you submitted PAN card, then TDS rate will be held at 10%. If you submit form 15G/H and your total taxable income is below the subscribed income tax limit (which is Rs 2,50,000 or lower now). 15H is applicable for senior citizens above 60 years of age. 15G is applicable for individuals below 60 years and resident indians to stop withholding of TDS from all deposits. How to get TDS deducted from Income Tax department is by submitting Form26AS. The limit for TDS to be deducted is Rs 40000. Even if your FD interest is below Rs 40000 it is still clubbed into taxable income. For more details check our blog at http://www.smartmoneygoal.in