{"id":44644,"date":"2021-05-17T19:12:08","date_gmt":"2021-05-17T13:42:08","guid":{"rendered":"https:\/\/www.newsilike.in\/?p=44644"},"modified":"2021-11-15T18:38:30","modified_gmt":"2021-11-15T13:08:30","slug":"tds-deducted-on-fixed-deposit-investment","status":"publish","type":"post","link":"https:\/\/www.newsilike.in\/tds-deducted-on-fixed-deposit-investment\/","title":{"rendered":"How Much TDS is Deducted on Fixed Deposit Investment?"},"content":{"rendered":"

\"How<\/h2>\n

What is TDS?<\/strong><\/h2>\n

TDS (Tax Deducted at Source) is a fundamental part of the direct taxation process that applies to several sources of income some of which include salary, fixed deposits, LIC maturity amount, contractor payments, and several others. A key benefit of the TDS<\/a> is that it is deducted at the source thereby proving to be beneficial for the lawmakers and the taxpayers. For the government and the lawmakers, TDS helps in checking and avoiding tax evasion. When it comes to taxpayers, it relieves individuals from the burden of having to calculate taxes and pay them as a lump sum at the end of the year.<\/p>\n

How Much TDS is Deducted on FDs?<\/strong><\/h2>\n

It is a common fact that FDs are taxable. Typically, the TDS charged on FDs is 10% in case the interest that is gained on the capital is more than Rs. 10,000 in AY 2019-20. However, in AY 2020-21, TDS on FD interest<\/a><\/u> is 10% only if the interest gained is beyond Rs. 40,000. However, for NRO accounts, the TDS charged is 30%. On the other hand, for NRE and FCNR accounts, no TDS is charged on FDs. Moreover, for FDs made with post offices, no TDS will be charged.<\/p>\n

To gain deep insight into the TDS that is deducted on fixed deposits, Form 26AS can be a great resource. Nonetheless, the TDS charges will be 20% in cases where individuals do not provide the bank with their PAN Card.<\/p>\n

How to Reduce TDS on FD?<\/strong><\/h2>\n

Here are 3 ways in which you can reduce TDS on fixed deposits.<\/p>\n