Index fund corner
Sponsored
| Name of the scheme | 1-year back | Invest now | Fund category | expense ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest now | Equity: Big Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest now | Equity: Big Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest now | Equity: Big Cap | 0.25% |
| Axis Nifty 500 Index Fund | , | Invest now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest now | Equity: Mid Cap | 0.28% |
Let’s see what is a fixed deposit and how to calculate TDS on FD.
What is a fixed deposit?
Fixed deposit (FD) is an investment option where a person invests a lump sum for a fixed period. Bank-Zari investment option allows investors to earn interest at a fixed rate on deposits.
Investors can opt for monthly, quarterly, semi-annual or annually to get their interest. It is one of the safest investment options, which offers guaranteed returns with a risk of capital loss. Fixed deposits also provide better interest rates than savings accounts.
What is the tax deduction on the source (TDS)?
A process cut in source (TDS) is a process used by the Government of India to collect taxes at the source of income. An individual (deduction) required to pay defined payment to another person (deduction) must cut tax at the source and submit it to the central government account. The DecTee, whose income has been cut at the source of tax, deserves a credit for the amount deducted based on Form 26AS or TDS certificate issued by the deductor.
This applies to various types of income categories like salary, interest on fixed deposits, rent etc., TDS will be deposited through e-payment or through physical mode in government credit. It is necessary to cut at the rates prescribed by the tax department.
What is TDS on fixed deposits?
The amount deducted on the source on fixed deposits is the amount that deducts from the premium of the bank investor and is interest after FD matures.
This is usually calculated using the predetermined percentage of the final dividend and the government is paid as tax. This is then added to the recipient’s income tax accounts and adjusted according to their individual income tax returns.
How to calculate your TD on fixed deposit
The interest earned on FD is completely taxable, which is considered ‘income from other sources’. The amount of TDS collected on FD is calculated by FD’s interest income more than the financial year. The calculation takes into account your interest rate, deposit, duration and applied slab.
If your annual income is less than 2.5 lakhs, then the bank will not tax your fixed deposit. However, some lenders may need to file Form 15G or 15 H to claim deductions.
If your total interest income from FDS is less than 40,000 per year, it is exempted from TDS.
On the other hand, if your interest income is more than 40,000, then TDS is 10%. Also, if you do not have a PAN card, the bank can cut 20% TDS.
Senior citizens are subject to the same rules as others, with the exception that their interest earned. It should be more than âı 50,000 instead of 40,000.
,
