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Tax Treatment of Joint Saving Account and Fixed Deposit (FD)

Question: If I have a Joint Saving Account and FD. My question is, whether this interest will attract tax?

                              

Answer: A fixed deposit (FD), whether single/jointly held through bank saving account will attract tax as below:

                                              

i) TDS (tax deducted at source) will be cut in case the interest payment on the bank FD is > Rs 10,000 p.a. The rate is 10% (excluding cess);

                               

ii) You will have to mention the interest earned on the FD in your ITR at the time of tax filing. The interest amount is fully taxable at your applicable income tax slab rate.

                             

Warm Regards,

Experts @ TaxYogi

Published Jul 20 2010




Comments

Comments

 

Niranjan said:

As fixed deposit will for a fixed period

July 22, 2010 5:07 AM
 

Niranjan said:

As fixed deposit will for a fixed period

July 22, 2010 5:07 AM
 

DD said:

if we have joint name fd  in name AB EARNINTERES 11000 AND BA EARN 10000 ,WHAT IS TDS AMOUNT WHETHER FD ARE MAKE FROM SAME SAVING ACCOUNT.

September 29, 2010 8:57 AM
 

priya said:

@DD: Bank FDs are subject to TDS deduction if the interest in each bank FD exceeds Rs 10,000 p.a.

October 1, 2010 1:05 AM

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