Can anyone pls tell me what is the tax implications of Interest on Recurring Deposits. I guess there is no TDS ptovision for that. It means we have to seperately show that interst as Income from other sources and pay tax ourselves? I need some elaborate details in this matter. Hope there will be someone to help me out. Advance Thanx..
12 September 2012
Your understanding that Interest on RDs is not subject to tds is correct.
Interest on TDS will be shown in the income tax return of the assessee and the amount is charged to tax as per the slab rate of the assessee.
In other words, interest from RDs during the year will be taxed as Income from other sources. Assessee will add this to his taxable income and apply the relevant slab rates
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