TDS on Fixed Deposits – Resident Indian / Domestic Deposit?



Hi. I have some queries regarding TDS on Fixed Deposits in India [domestic deposits by resident indians only]

TDS Rate: Is the rate of TDS [eg 10%] dependent on the income tax rate of the individual [slab rate]? If a person is in the 30% taxable slab as per his annual income, is he liable to pay 30% tds on the interest income or is it a flat 10%?

Amount deductable: Is the incremental amount above 10000 taxable or the entire interest income? [eg. 15000 income from FDs, same branch]. Is 5000 applicable for TDS or 15000?

Offsetting TDS deduction with ITR filing:
Assuming an amount of 3000 has been deducted by way of TDS.
How is this amount offset in one’s income tax filing? Is 3000 reduced from gross taxable income? Or is it reduced from interest income. How are avoiding double taxation on the interest income?

Thanks.

TDS on Fixed Deposits – Resident Indian / Domestic Deposit?
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3 Replies to “TDS on Fixed Deposits – Resident Indian / Domestic Deposit?”

  1. Typically Banks deduct 10% of interest over and above Rs15000.

    However when you file your IT, you have to add your interest income to your total income. This becomes your taxable income. Then you have to find out how much tax you owe based on the income slab. from the tax payble, deduct the TDS amount(s) to get the net tax you need to pay or you will get refund.



  2. My taxable income from salary is Rs.200000 and interest from fixed deposit is Rs.10000 then how much income tax I will have to pay





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