TDS on FD

POSTED BY qwerty ON July 24, 2012 11:59 pm COMMENTS (2)

Hi all.

I have an FD for Rs 1,50,000. The interest on this FD, being greater than Rs 10000, will attract TDS. Also, my income falls in the 20% income tax slab. So, while filling up the income tax return form, in the section “interest from other sources” if i put the interest from this FD, the form will automatically calculate the tax based on the 20% slab.

Now, to avoid this extra 10% of tax(20%-10%), how shall i proceed while filling up the income tax return form?

2 replies on this article “TDS on FD”

  1. qwerty says:
    July 25, 2012 at 7:48 pm

    Thanks Manish…. u just raised my tax liability by 10% on my interest income. 🙂

    Reply
  2. Manish Chauhan says:
    July 25, 2012 at 10:51 am

    But the tax you need to pay is 20% only , the TDS might be cut as 10% , then in that you need to pay extra 10% tax on FD interest again . Is this the case ?

    If TDS is cut at 30% , then you are liable to get back 10% . in which case you need to apply for refund !

    Manish

    Reply

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