Now FD in the banks and the post office to be proved 'advantages' deal
Friday - February 15, 2019 1:15 pm ,
Category : WTN SPECIAL
People's trends toward FD to be increased
FD once again proved to be a 'better' option of investment
FEB 15 (WTN) - If you have an FD in the bank or the post office or you are going to open an FD, then now it is going to prove to be a good deal for you in the coming days. As you know, that if the amount of interest paid on FD during the financial year under section 194A of the Income Tax Act is still more than Rs 10,000, as per the rule then 10% of TDS to be deducted on that excess amount.
But now according to the new rules in the budget, the TDS limit has been increased up to Rs 40,000. The banking sector experts believe that this will provide great relief to the taxpayers, but this will also benefit the banks because once again FDs will be popular among the public and the banks will have increasing in the deposit amount.
According to the existing rules, the limit of TDS exemption on FDs in the bank or the post office is Rs 10,000. For example, if you pay open a fixed of Rs 3 lakh for a year at State Bank of India ay the 6.80 per cent interest rate, then you will get Rs 20,400 as interest in the year on a sum of Rs 3 lakh. This amount of interest is 10,400 rupees more than the TDS limit of Rs 10,000 and TDS will be deducted on this excess amount.
According to the rules, if the interest from your interest is more than Rs. 10,000, then you have to fill the 15 G / H form to avoid the TDS deduction on the bank deposit. But if you forget to fill up this form, then TDS will be deducted from your interest amount. Not only that, even after deducting TDS, if your income is below the income tax exemption limit, you also have to file an Income Tax Return.
But after the new budget proposal of the Modi government, the TDS exemption limit of Rs 40,000 will be of great benefit to those people whose life is depended on the interest earned from FD. According to the new rules, TDS will be deducted only when the annual interest on the FD made at the bank or post office is more than Rs 40,000.That is, if you have FD in the State Bank of India at the rate of 6.80 per cent annual for one year, then your TDS will not be deducted on the interest earned on FDs up to Rs 5,80,000. Because it’s annual interest will be maximum Rs. 39,440.
Experts of the banking sector believe that increasing the limit of TDC exemption on FDs will benefit the banks as the customer will once again turn toward FDs as a great alternative of investment. With the limit of TDS exemption limit of Rs 10,000 only, the FDs were getting lesser in the banks, but now the TDS exemption limit has been extended up to Rs 40,000, once the trend of the people will increase again towards FD.
FEB 15 (WTN) - If you have an FD in the bank or the post office or you are going to open an FD, then now it is going to prove to be a good deal for you in the coming days. As you know, that if the amount of interest paid on FD during the financial year under section 194A of the Income Tax Act is still more than Rs 10,000, as per the rule then 10% of TDS to be deducted on that excess amount.
But now according to the new rules in the budget, the TDS limit has been increased up to Rs 40,000. The banking sector experts believe that this will provide great relief to the taxpayers, but this will also benefit the banks because once again FDs will be popular among the public and the banks will have increasing in the deposit amount.
According to the existing rules, the limit of TDS exemption on FDs in the bank or the post office is Rs 10,000. For example, if you pay open a fixed of Rs 3 lakh for a year at State Bank of India ay the 6.80 per cent interest rate, then you will get Rs 20,400 as interest in the year on a sum of Rs 3 lakh. This amount of interest is 10,400 rupees more than the TDS limit of Rs 10,000 and TDS will be deducted on this excess amount.
According to the rules, if the interest from your interest is more than Rs. 10,000, then you have to fill the 15 G / H form to avoid the TDS deduction on the bank deposit. But if you forget to fill up this form, then TDS will be deducted from your interest amount. Not only that, even after deducting TDS, if your income is below the income tax exemption limit, you also have to file an Income Tax Return.
But after the new budget proposal of the Modi government, the TDS exemption limit of Rs 40,000 will be of great benefit to those people whose life is depended on the interest earned from FD. According to the new rules, TDS will be deducted only when the annual interest on the FD made at the bank or post office is more than Rs 40,000.That is, if you have FD in the State Bank of India at the rate of 6.80 per cent annual for one year, then your TDS will not be deducted on the interest earned on FDs up to Rs 5,80,000. Because it’s annual interest will be maximum Rs. 39,440.
Experts of the banking sector believe that increasing the limit of TDC exemption on FDs will benefit the banks as the customer will once again turn toward FDs as a great alternative of investment. With the limit of TDS exemption limit of Rs 10,000 only, the FDs were getting lesser in the banks, but now the TDS exemption limit has been extended up to Rs 40,000, once the trend of the people will increase again towards FD.
