i. Interest Income
My total income for the year is below the tax limit. Can I avoid TDS on my interest income?
Yes, you can avoid TDS on your interest income if your total income is below ₹2,50,00 (below the taxable limit). By submitting self-declaration form 15G (below 60 Years) and 15H (60 years and above) exemption on TDS can be claimed.
How is interest on corporate bonds of public and private companies taxed?
Interest on corporate bonds is taxable on accrual basis at slab rates. Since these are dematerialised and listed, there is no TDS and there is a possibility of capital gains arising from sale of the bonds which is taxed as per capital gains tax ...
How much TDS is applicable on Fixed Deposit and Recurring deposit interest?
TDS rates on FDs/RDs are as follows: @ 10% on interest to residents, @ 20% is applicable in absence of PAN / invalid PAN. @ 30.90% to non-resident Indians
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.
Is there a deduction available on interest income from Fixed Deposits/Recurring Deposits?
There is no deduction available on interest on FDs/RDs. The entire interest income earned from these is liable to be taxed on accrual basis at the slab rate applicable.
Is TDS deducted on my savings account interest?
No, there is no TDS on interest income from savings account
What if my interest from savings account exceeds ₹10,000?
If the interest earned from these sources exceeds Rs.10000, then the extra amount will be taxable. For example: If Sunil earns Rs.7000 from his saving accounts, he does not need to pay tax on it, as it is less than ₹10,000. But if he earned Rs.12,000 ...
How is the interest on my savings account taxed?
Interest on savings account is taxable as per Income tax slab rates applicable to the investor. However, under section 80TTA, interest up to ₹10000 earned from all savings bank account is exempt from tax. This is also applicable to savings bank ...
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.