Guidance on tax on fd interest
Hello
My father is giving me 1.6 crore rupees and i want to use its interest from FD evry month or quarterly whichever possible. At rate of 8.5% what will be my tax obligation. How much will i get after deductions?
Replies (3)
Where the interest on Fixed Deposit exceeds Rs.10,000 during the year, the Bank will be obligated to deduct TDS at the rate of 10%.
Do banks offer quaterly payout fd schemes?
If my income from interest is 1360000 then at 10% tds deduction it remains 1224000
At what rate 1224000 will be taxed and what will i recieve after deductions?
Deduction will be on the intereset portion and not on the full amount of deposit. For instance, the bank is going to pay you interest of 8% on 1 crore, then the interest amount is 8 lakh. On 8 lakh TDS at the rate of 10% of 80,000 would get deducted.
The pay out varies from various schemes available in banks.
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