Is there a deduction available on interest income from Fixed Deposits/Recurring Deposits?

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• What are the sources of interest income which should be reported in the Income tax return?

  Investments like fixed deposits, savings account, post office schemes, recurring deposits earn interest income, which should be reported in one's income tax return.

• Does filing Form 15G/Form15H mean that my interest income is not taxable?

  Form15G/Form15H is only a declaration that no TDS should be deducted on your interest income since tax on your total income is nil. Interest income from fixed deposits, recurring deposits, and corporate bonds is always taxable.

• Which section of the I-T Act deals with TDS on interest income?

  Section 194A deals with a deduction of TDS on interest other than ‘interest on securities’. This could include Fixed Deposits & Loans and Advances other than banks. This TDS is deducted for resident individuals only.

• Is there a TDS on Fixed Deposit/Recurring Deposit income?

  Yes, if the amount of interest accrued or paid during the financial year exceeds Rs.10,000/-, TDS is applicable from the first interest flow.

• Interest

  Any interest income received from saving bank account, FD/RD, income tax refund or any other mode. You can avail the benefit of Rs 10,000 U/S 80TTA from saving bank interest if age is below 60. If you are a senior citizen u can avail the benefit of ...