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What is the taxable amount for fixed deposit in local bank?

How much must be the amount for a fixed deposit in a bank with 9% interest such that TDS (tax) will not be debited? And is it necessary to declare this for income tax?

  • Answer:

    Firstly - Any income you earn from a fixed deposit, even if it is just Rs. 100/- this income has to be added to your annual income because that is the tax law in India. If you dont declare, you will be considered a Tax Evader and punishment is usually a heavy fine and may even result in jail time if the tax evasion amount is too high. Irrespective of whether the banks deduct TDS or not, they will pass on all account details where the customer is earning an interest from them so that Tax Officials can easily trace back to the customer and find out whether that person is filing tax returns properly. If you have an Income in India that exceeds the minimum income limit (2.5 lakhs presently) you are expected to file your tax returns. Even if your income is lower than this limit, it is always a good idea to file a NIL returns to keep a record of your income. It will definitely be useful to you in future when you for ex: when you go for a home loan. Non filing of income tax returns is a punishable offense and you can be jailed and/or fined heavily for this. Learn more about Indian Income Tax here: http://anandvijayakumar.blogspot.com/2013/12/your-complete-guide-to-indian-income.html Anand

Anand Vijayakumar at Quora Visit the source

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The Deposit must be approximately 1,11,000.00 so that you can optimally utilize the savings and not get into the tax bracket of TDS, and pertaining to the declaration, you have to show it in your IT, it will reflect in bank summary.

Sagar Shreshta

Interest on fixed deposits upto Rd 10000 are exempt from tax deduction at source. However incase your total interest received from the bank will be less than your taxable income, you can give 15 G for persons less than 60 yes old and 15 H for people above 60 yes of age. Then the bank will not deduct tax at source. The duty is cast upon you file your tax return. Interest earned upto Rd 10, 000 in savings bank account is exempt from tax. No TDS is deducted for amount exceeding this.

Ramamurthy Guruvayurappan

One, about declaring the interest received on FD for IT, whatever an assessed might receive should be declared, TDS or no TDS. Banks do not TDS up to Rs.10,000 received as interest during a financial year.

Damodarn Krishnaraj

You cant. You have to declare, otherwise you would be penalized

Alekh Mittal

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