Interest on bank term deposit taxable or not?



If Yes then how it will be calculated?
Does the interest automatically deducted as my PAN is mentioned in Bank?

Say a senior citizen invested 5K in Bank TD for # years and get interest in every quarter.Will that be under tax deduction?

Interest on bank term deposit taxable or not?
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3 Replies to “Interest on bank term deposit taxable or not?”

  1. First of all interest income is taxable under the income tax act, if you have mentioned the pan card to bank they will surely deduct TDS on your interest income. But may be you have other income and all your income if under the exemption limit then you dont need to pay tax in that case u will be entitled to get your TDs deducted by bank,
    please mail me your detail, i’ll help you to calculate your exact tax liability.


  2. 5000/- @ 11% = 550 interest TDS 10% = 55/- will be deducted and paid to the IT dept.on interest payment date, but you can give form 15 declaring your income is less and not taxable.


  3. Interest on Term Deposit is taxable under Income from Other Sources.It will be part of taxable income and tax liability will be computed after considering basic exemption limit.
    If Interest from one branch exceed Rs 10,000 per annum, TDS @ 10% is deducted. This concept applies to senior citizen too. However, if senior citizen has only one income of interest on term deposit and submits Form 15G, no TDS will be deducted.
    Thanks





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