Tax on 1 year term fd

Bank must have deducted TDS on such interest......

Anyways, This 2,50,000 ( income from other sources) plus the house property income(after 30% deduction) will form the gross total income & claim the deductions under chapter VI, & then apply the slab rate.

To save tax liabilty in future you can invest in 5yr FD with bank so that you can claim ded u/s 80C.....

Other deductions are also available to you.(ie 80C, 80D, 80TTA)

She may invest in NSC - 5 years which is eligible for 80C deduction to save tax.

Alok - do you mean the interest earned can be gifted to someone? In that case what paper formalities would be required.