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If the interest alone is the income from fd, is it taxable?

jraju (Others) (274 Points)

28 April 2017

If the income to a person is only through the interest from fd, is that interest taxable? My wife only is getting income as interest from her FD aamount. Is the interest taxable. She has no other source of income.

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16 Replies

Farhaad Jiwani (Tax Consultant at Nagpur) (303 Points)
Replied 28 April 2017

it is taxable if it crosses basic exemption limit for the relevant AY

binay shaw (Student CA IPC / IPCC) (135 Points)
Replied 28 April 2017

INTEREST ON FD IS TAXABLE ON INCOME FROM OTHER SOURCES BUT IF YOUR INTERSET AMOUNT IS LESS THEN RS.250000 THEN NO NEED TO TAX

jraju (Others) (274 Points)
Replied 28 April 2017

Hi, Thanks for the reply.. So, she could give 15 g at the bank , not to deduct 10% tax , as otherwise, it will be deducted . Ok. pl confirm

Farhaad Jiwani (Tax Consultant at Nagpur) (303 Points)
Replied 28 April 2017

if total FD intt income (as the only income assessee is earning) during the FY doesn't exceed 2,50,000/-, then submit 15g to the bank

jraju (Others) (274 Points)
Replied 28 April 2017

Hi, Thanks for the reply. Pl. see the llink. I have raised a query, but i could not find in the Others thread. How to access my posts in this forum

/forum/does-scribbled-new-notes-are-not-accepted-by-bank-solution-389347.asp

binay shaw (Student CA IPC / IPCC) (135 Points)
Replied 28 April 2017

If your fixed deposit interest is less than rs.10000 then bank will not deduct tds @ 10%.but it is better to deposit the form 15g to the bank.

jraju (Others) (274 Points)
Replied 28 April 2017

Hi, i could not find my post in other forums in the link i have given above. In my profile , and in posts, i could find, how to look for my postings in the forum thread in the respective topics pl any one

SUNEEL KUMAR (Sr. Accounts & Finance Executive) (163 Points)
Replied 29 April 2017

i agree with above experts if income from other sources less than 250000 then no need to tax payment. Also submit the form 15G in bank.

TDS deduction by bank subject to int. amount should be above than Rs.10000

Sivaiah Ganga (68 Points)
Replied 29 April 2017

If your wife donot have any source of income wherefore she got huge amount to make a fd in the bank.... Naturally, it is from you..... So the interest received by her has to be clubbed to your income and you have to pay tax as per sec 64 of incometax... Please check once.... If it found out by the department, you have to pay not tax plus interest but also penalty which will be 100% to 300% of tax sought to be evaded......

jraju (Others) (274 Points)
Replied 29 April 2017

Hi, do you want to say that she will not have any icome. The amount is not huge. I think you have answered in a negative way. The other answers gave clarifications.Thanks

DWARKADASKOTHARI (PROPRIETOR) (22 Points)
Replied 29 April 2017

Be more Clear sir, Because you have told that this income only ultimate income of your wife, then how she got the amount of Investment in FD? Did you make FD in her name? or Did you give her money, but she invested in FD? whatever it is, if source of that FD is not of her menns you have to include that FD Interest with your income and pay tax accordingly. Otherwise and if interest is less than the slab rate just go to declare with Form15G in Bank.

jraju (Others) (274 Points)
Replied 29 April 2017

She has her savings and where is the huge amount you speak. Not at all related replies. . I just asked a query and getting replies from this site. Thats all.

Sivaiah Ganga (68 Points)
Replied 29 April 2017

If you don't want proper reply nobody can do.... Once your donot have any sources except money given by you, interest on FD, however small it may be, clubbed with your income and have to pay taxes... If she had her sources of income and FD is made out of her sources , no problem, it need not be added and if the interest along with her other sources income is below taxable limits, you can give firm 15H as guided.... What we get if we give negative answers... This is correct... Please check sec 64 of Income-tax Act....