8 Replies to “Once TDS is done on Fixed deposits, is the balance amount taxed again?”

  1. T.D.S. charged on income,which is over then exampted by I.T. roules. You should bifercate the deposits. Deposits should not be occured income/interest upto Rs.10000/= whithin the financial year,which is applicable every 1-4 to every 31-3

  2. TDS is not made on amount of fix deposits. It is deducted from interest earned on it. Interest is earned every year and TDS is made accordingly, if the interest is in excess of Rs.10000/- on that deposit. On maturity or premature withdrawal of FD, TDS will not be made on FD but Interest portion being paid on it.

  3. TDS is on the interest income on your deposit. Deposit amount will not otherwise be treated as income. While computing the taxable income for the financial year, the assessee need to add the interest income also and work out the total tax liability. All TDS can then be set off against the tax due and balance if any need to be paid.

  4. Remember the key word- Rs 10,000/- interest per financial year, your calculations will not go wrong , if you are a PAN card holder and and income tax payer. Else the limit of investment is quite a lot subject to some forms being filled. Check with your bank, they will advise you better.

  5. TDS does represent not the exact tax due on the earnings, you have to include it and account for the rest, if it is due, and seek refund if it is not due.

  6. Tax deduction is a statutory formalities which is bindind by income tax law . It depends upon the person whose income was attrcted TDS whether he /she or a person above 65 age. If the total income Does not includies any other income then considering the above aspect Tax to be paid accordingly on balance FD if not required tax not to be paid

  7. Yes. If you are having 125000/ as deposit. Your bank is paying 10500 as interest. The Bank will deduct tax at 10.2% from the int payable.(10% taxplus.2% education cess etc). But the problem is if you are asessee and you are liable to pay tax for the interest it may be 20% or 30% depending the income slab of you. So you have to pay the remaining tax (30%- 10.2 or 20% -10.2). If you are income is within the taxable limit (including the interest of 10500) your can ask for refund from income tax department by submitting income tax return and with form 16A( for tax deducted from deposit int). In that case you can avoid the tds by submitting 15G form before the tax deducted from your deposit every year.

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