How to calculate and submit income tax on rd of banks.

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Amresh singh

Others

21 Points Posted on 25 September 2013

Sir,

I want to know how to calculate TDS on RD, i have asked in bank they told me that they will not deduct any TDS on RD,

then how can i calculate it.

Let say for example if a person has a RD of 15000/- per month for 60 months with rate of interest of 8.5% compounded quaterly then how much TAX he has to pay for 1st year then in 2 year or he can pay it on maturity as the amount is high it can change the slab too.

Again if he has to submit tax then how can he submit .

Thanking u

Replies (4)

MANISH

student

116 Points Posted on 25 September 2013

https://www.hdfcbank.com/RD_Calculator/

go to this link and select here as per your preference and fill the parameter.

Mihir

Wealth Manager

5358 Points Posted on 25 September 2013

It depends on the terms of RD interest payment. The interest is 8.5% compounded quarterly, but whether the bank is paying the interest in saving account or reinvesting interest in RD account.

At the end of 5 years, the maturity shall be approx 12,34,747/-

Mukesh Goel

CA CFA

105 Points Posted on 25 September 2013

Interest is always tax on accrue basis, when it is accrued to you if become taxable. Since, its an RD the interest component on this can be easily calculated by creating a macro in excel which will give you exact interest or you search engine there will be tools available to divide between principal and interest.

The best option is go to bank and ask for RD statement if possible and then find out the interest on this.