Interest on Fixed Deposit and Recurring Deposit is taxable as per your income slab.
For FD : TDS may be deducted
For RD: But Tax is not deducted i.e TDS is not applicable on the Interest earned by Recurring Deposits as per current income tax rules.
TDS for FD:
Tax Deducted At Source or TDS: TDS is deducted every time the interest earned for the financial year in the bank is more than Rs 10,000 in a single branch, whether it is paid or not. If you have a Fixed Deposit which spans multiple years and you have opted for cumulative option. Then even though you don’t get interest bank will cut TDS and deposit it with central government if interest on that year is more than 10,000.Note: For Fixed deposit with NBFC TDS is cut when interest income that you are likely to earn for all your deposits is greater than Rs. 5,000/-
Amount of TDS : The bank will deduct TDS at the flat rate of 10% if you have provided your PAN details.If PAN details have not been provided TDS shall be deducted at the rate of 20% .
Interest on Fixed Deposit and Recurring Deposit is taxable as per your income slab.
For FD : TDS may be deducted
For RD: But Tax is not deducted i.e TDS is not applicable on the Interest earned by Recurring Deposits as per current income tax rules.
TDS for FD:
Tax Deducted At Source or TDS: TDS is deducted every time the interest earned for the financial year in the bank is more than Rs 10,000 in a single branch, whether it is paid or not. If you have a Fixed Deposit which spans multiple years and you have opted for cumulative option. Then even though you don’t get interest bank will cut TDS and deposit it with central government if interest on that year is more than 10,000.Note: For Fixed deposit with NBFC TDS is cut when interest income that you are likely to earn for all your deposits is greater than Rs. 5,000/-
Amount of TDS : The bank will deduct TDS at the flat rate of 10% if you have provided your PAN details.If PAN details have not been provided TDS shall be deducted at the rate of 20% .
For details you may go through:
Fixed Deposits and Tax
Overview of Recurring Deposits