![]() interest rates over the regular FD rates offered to general citizens. Senior citizens can get an additional benefit of 0.25% to 0.80% p.a. Most banks offer higher FD interest rates to senior citizens of age 60 and above. The interest rate of a Tax Saving FD ranges from 5.60% to 8.00%. ![]() Doing so would allow the banks to not deduct TDS on the FD interest and thereby, help such depositors in more effective cash flow management.Īs FD interest income is added to one’s annual income while filing tax returns, depositors who have filed Form 15G/H but have taxable income would have to pay tax as per their tax slabs while filing ITR. ![]() But, if PAN details are not provided, TDS 20% is deducted from the interest income.ĭepositors who do not have taxable income can furnish a declaration in Form 15G and Form 15H (for senior citizens aged 60 & above). TDS 10% is deducted if interest income exceeds Rs 40,000 (Rs 50,000 for resident senior citizen) during the financial year. Book SBM Bank FD & Get Lifetime FREE Step UP Credit CardĪccording to Section 194A of the Income Tax Act, TDS is applicable to the interest earned on fixed deposits.
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