BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Rs. 40, 000
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Rs. 50, 000
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Rs. 60, 000
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Rs. 20, 000
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Detailed explanation-1: -Relief to Senior Citizens: Exemption of interest income on deposits with banks and post offices to be increased from Rs. 10, 000 to Rs. 50, 000.
Detailed explanation-2: -Understanding TDS in relation to FDs If your interest income from all FDs with a bank is less than Rs 40, 000 in a year, the bank cannot deduct any TDS. The limit is Rs 50, 000 in the case of a senior citizen aged 60 years and above. Prior to Budget 2019, the limit of TDS on interest income was Rs. 10, 000.
Detailed explanation-3: -A lock-in period of 5 years. Interest earned is taxable. The rate of interest ranges from 5.5% – 7.75%
Detailed explanation-4: -To claim the deduction under this section, first, add your total interest income under the head ‘income from other sources’ in your Income Tax Return Form. The deduction will be shown under Section 80 Deductions under Section 80TTA of Income Tax Act.
Detailed explanation-5: -Income Tax Exemption on FD The principal component of Tax Saver FDs of up to Rs 1.5 lakhs each financial year would qualify for tax deduction under Section 80C.