Investment in Fixed Deposits
This query is : Resolved
07 January 2023
Dear Sir,
As banks are now offering fd interest rates at around 8%, is it advisable to redeem existing fd's and make a new fd with higher rates after taking into effect premature withdrawal rate deduction and the tax to be paid on interest earned on fd redeemed.
I had booked the FD previously at 5.5% interest rate.
Please suggest.
Regards,
Divyesh Jain
As banks are now offering fd interest rates at around 8%, is it advisable to redeem existing fd's and make a new fd with higher rates after taking into effect premature withdrawal rate deduction and the tax to be paid on interest earned on fd redeemed.
I had booked the FD previously at 5.5% interest rate.
Please suggest.
Regards,
Divyesh Jain
07 January 2023
Compare the interest amount foregone for the remaining term of FD with the new interest amount at the new interest rate on the new principal amount for that remaining term.
Interest foregone = Total interest for the full term - Net interest given by the bank for the elapsed term.
New principal amount = Original principal + Net interest given by the bank for the elapsed term - TDS
Interest foregone = Total interest for the full term - Net interest given by the bank for the elapsed term.
New principal amount = Original principal + Net interest given by the bank for the elapsed term - TDS
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- NRI starting business in India
- ADVANCE PAYMENT OF ADVOCATE
- GST not cancelled by tenant
- FORM 141 SDV query
- REGARDING ANNUAL RETURNS FILLINGS OF A COMPANY INCORPORATED ON 28.03.2025
- Tally: Imported bank entries do not show up in manual reconciliation
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
