Tax on rd
I have opened an rd in a nationalised bank
details
Amt===500
time ===19 months
Rate of intrest
7.75
is it taxable..?
Replies (4)
As per amendment in section 194A of Income Tax Act, the word 'Term Deposits' also includes 'Recurring Deposits' and therefore TDS @ 10% would be applicable on total interest earned during the year on RDs + FDRs. But if total interest on RD & FDR earned during the year does not exceed Rs. 10000/-, No TDS on such interest will be levied.
However while filing your personal income tax return, you need to show interest on RD and FD as income and this will be taxable, only if your income exceeds taxable limit.
Thanks for u r reply
The thing is im an student i dont even pay tax i startd to operate e-RD from the month so do i need to submit the form.?
Regards
Ashok
If you want to operate RD of Rs. 500/- monthly, you need not submit any tax related form i.e. no need to submit form 15G.
Thank you vikas sir
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