Tax on FD

POSTED BY Paresh ON January 24, 2013 12:48 pm COMMENTS (7)

Hi,

I am in 20% tax slab. I earned around Rs. 20,000 interest amount from different FDs and saving accounts. Please let me know how much tax I have to pay.

Also in this Rs. 20,000, I got Rs. 12,000 interest from such an account where I and my wife have joint account. Her annual salary is Rs. 2,40,000. Now, how to calculate tax?

Please help.

Thanks
Paresh

7 replies on this article “Tax on FD”

  1. Dear Paresh, please declare your interest income to your employer & your employer ‘ll deduct Tax from your salary & deposit the same to Income Tax department. This way, your income tax ‘ll be deposited automatically.

    10000 Rs. FD interest per bank is the limit above which, TDS ‘ll become applicable on the full amount & not the excess amount.

    Thanks

    Ashal

  2. Karthik says:

    You can use the below link to pay the tax online. but, first calculate the exact amount you have to pay as tax.

    http://insurance.kotak.com/individual/pdf/kotaksingleinvestplus.pdf

    Otherwise, your employer may be asking you to declare your Investment proofs / Additional income, where you can declare this ‘interest income’.
    Once you do that, your employer will deduct that tax on interest income from along with the tax on your salary. Your form 16 will reflect that this interest income and its tax deducted and deposited.

  3. Paresh says:

    Thanks for your quick reply. I got the answer.

    Currently my company is deducting TDS so how I can pay tax on FD? I don’t know the procedure.

    Also bank will deduct tax only if interest amount is greater than Rs. 10,000.

    Thanks
    Paresh

  4. Paresh says:

    Hi Ashal,

    Below is the interest detail:

    Axis Bank my saving account: Rs. 4,000
    SBI joint saving account: Rs. 1,000
    SBI joint FD: Rs. 11,000
    SBI my FD: Rs. 4,000

    I don’t know regarding share in joint account. I think it would be 50-50%.

    Thanks
    Paresh

    1. Dear Paresh, good news for you, the interest income from SB account upto 10000 Rs. is tax free in current FY. So Axis Bank’s 4000 Rs. & SBI’s 1000 Rs. is tax free.

      Only FD interest is taxable.

      So for you, 50% of joint FD = 5500 Rs.
      Axis Bank’s single FD = 4000
      Total 9500 Rs. interest ‘ll be taxable & it ‘ll be added to your income from all sources.

      For your wife only 5500 Rs. interest of joint Fd ‘ll be taxable so her taxable income ‘ll be 240000+5500 = 245500 Rs.

      Thanks

      Ashal

  5. Dear Paresh, how much interest is there from SB accounts & how much from FDs? what’s the share of each of you in that joint account?

    Please clarify.

    Thanks

    Ashal

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