Tax on fds

1. Principal amount of FD is not taxable provided the source of income for opening such FD was taxed earlier.
2. If such FD is not eligible for deduction u/s 80C, then no deduction can be claimed from income chargeable to tax
3. Interest on FD is taxable (in any case) and TDS is applicable if such interest exceeds Rs.10,000 p.a. in case of bank FDs.

Yes If interest on FD is 10000/- or more, the same I liable for TDS. However if you total income is below 250000/- then you can submit Form 15G in order to no deduction of tax at source The FD principal amt is not subjected to tax irrespective of whether it is tax saving or not However the FD that you have made should be from the funds which were taxable either to you ( if not gifted) and to the donor (if gifted) If the source of FD is not disclosed then you will be liable to pay tax on it as well In the present case, where FD is made out of income from previous job, therefore the principal amt on FD is not taxable, however interest is subjected to taxable income