MANAGEMENT

Detailed explanation-1: -TDS 10% is deducted if interest income exceeds Rs 40, 000 (Rs 50, 000 for resident senior citizen) during the financial year. But, if PAN details are not provided, TDS 20% is deducted from the interest income.

Detailed explanation-2: -If you earn interest income of up to Rs 10, 000 from a savings account, you can claim tax deduction under Section 80TTA of the IT Act. However, if this amount exceeds Rs 10, 000, it is taxable as per applicable slab rates.

Detailed explanation-3: -Starting June 2015, when interest income from all the branches of the bank including from recurring deposits, exceeds Rs.10, 000 in a financial year, a 10% tax on interest earned will be deducted. The interest earned should be shown in ‘income from other sources.

Detailed explanation-4: -only the interest income from long-term deposits or investments certificates are covered by income tax exemption; 8. income tax exemption does not cover any other income such as gains from trading, foreign exchange gain; 9.

Detailed explanation-5: -Is fixed deposit interest taxable in India? According to the Income Tax Act, 1961, interest on FDs is treated as ‘income from other sources’ and hence, is fully taxable. The FD interest earnings are included in your gross annual income, and the tax liability is estimated, following the prevalent tax laws.