Bank FD: Get FD done in wife’s name, you will get this huge benefit with huge interest.

 

As per the FD rules, if you earn more than Rs 40,000 in interest on fixed deposits in a financial year, you will have to pay TDS at the rate of 10%. On the other hand, if you make an FD in your wife’s name, you can save this TDS.

Bank FD: Amidst the growing interest of common people in mutual funds and stock market, bank FD still remains the safest investment. Investors get fixed and guaranteed returns in bank FD. This is the reason why even today a large section of the country considers investing in bank FD to be the best and safest. Usually employed people get FD done in their name. But if you get FD done in the name of your wife, then you will not only get huge returns but can also save a lot of money.

TDS is deducted on interest of more than Rs 40,000

According to the rules of FD, 10 percent TDS will have to be paid on receiving interest of more than Rs 40,000 on fixed deposit in a financial year. On the other hand, if you get FD done in the name of your wife, then you can save this TDS. Usually in normal families, women are either in the lower tax bracket or are housewives. If your wife is a housewife, then understand that you will not have to pay any kind of TDS.

Exemption from TDS on taxable income less than Rs 2.5 lakh

Actually, people whose total taxable income is less than Rs 2.5 lakh are completely exempted from TDS on their FDs. Along with this, you also have to understand that the interest received from bank FD is counted in your income. Suppose your total annual income is Rs 9 lakh and you have received Rs 1.20 lakh as interest on FD, then your total annual income will be considered as Rs 10.20 lakh and you will have to pay tax on the basis of Rs 10.20 lakh.

Benefit will also be available on joint FD account

But if you make an FD in the name of your wife, then you can avoid paying additional tax due to FD interest. Apart from this, if you make a joint FD and make your wife the first holder, then in such a situation also you can save a lot.

Comments

Post a Comment

Popular posts from this blog

Senior Citizen Train Ticket Discount: Government has issued a new statement regarding giving discount to senior citizens on train tickets, know the details here

Image
  Senior Citizen Train Ticket Discount: Once again a demand has been made in the Lok Sabha to give discount to senior citizens on train tickets. Senior Citizen Train Ticket Discount:  Railways has withdrawn the discount given to senior citizens on train tickets since the Corona period. However, from time to time there has been a demand to restore this concession given to senior citizens in trains. Even in the winter session of the Lok Sabha, some members raised the demand for increasing fare concessions and facilities for senior citizens traveling in trains. However, even before this, Railway Minister Ashwini Vaishnav has told in the Lok Sabha that during the train journey, every passenger is given an average subsidy of 53 percent on the train ticket. Apart from this, he also told who gets discount on tickets while traveling by train. Demand for discount in train tickets raised again During Zero Hour in the House, Janata Dal (United) MP Kaushalendra Kumar said that before the Corona ep
Read more

Cash Transaction Rules: Income tax rules on cash transaction between Husband-Wife and Son-Father, know rules

Image
  Cash Transaction Rules: Income tax keeps an eye on our every transaction. But is there any tax on cash transactions or can Income Tax send a notice? Or how much cash transaction can take place between you and your wife or between father and son? If you also have these questions in your mind, then let us know their answers… If you also transact money between father and son or between husband and wife, then this news is useful for you. Actually, every transaction of ours has an eye on income. In such a situation, a question arises in the minds of many people whether income tax notice can be received even on cash transactions? Let us know how much cash transaction you can do in your family. Income tax sends notice? According to tax experts, if you give money every month for household expenses or give money as a gift, then the wife is not liable for income tax. Both these types of amounts will be considered as the income of the husband. The wife will not receive any notice from the Incom
Read more

Have a Current/Savings Bank Account? Know the Cash Deposit Limits under Income Tax Act to avoid Penalties and Notices

Image
  Adhering to cash deposit and withdrawal limits is crucial to remain compliant with the Income Tax Act in India. This article aims to elucidate the various facets of cash-related regulations, encompassing savings and current accounts, fixed deposits, credit card bill payments, real estate transactions, and more.  Cash Deposit Limits in Savings and Current Accounts The Indian Income Tax Act imposes specific regulations on significant cash deposits in savings accounts. Individuals accumulating INR 10 lakh or more during a fiscal year must notify tax authorities.  For current accounts, this threshold is set higher at INR 50 lakh. Although not immediately taxed, financial institutions report transactions exceeding these limits.  Cash Withdrawal and TDS under Section 194N  Section 194N outlines TDS rules for cash withdrawals. A 2% TDS is levied on withdrawals exceeding INR 1 crore within a fiscal year. Non-filers face a 2% TDS on withdrawals over INR 20 lakh and a 5% TDS on amounts exceedi
Read more