ITR Filing: TDS is deducted on FD, so claim it while filling ITR, see how to calculate

ITR Filing: You have a total of three days, including today, to file ITR. In such a situation, you will have to do many calculations so that you provide correct information about your income to the Income Tax Department. This income can be your salary, interest from savings account or FD interest. It is worth noting that your TDS is also deducted on FD which you can claim.

10 percent TDS is deducted for Indian citizens on income from any other source. According to Mint, TDS is also deducted on your FD at the end of every year under the same rule. But the Income Tax Department also gives an opportunity to the taxpayers to claim it.

How much TDS

will be deducted Before talking about TDS refund on FD, let us tell you that the interest received on FD is fully taxable. Your tax will be deducted but TDS will be returned. Now let’s talk about TDS. If you have an FD whose annual interest is Rs 40,000 or more, then the bank will deduct 10 percent TDS on it at the end of every year. At the same time, there is an additional discount of Rs 10,000 for senior citizens. This means that their TDS will start deducting from the annual interest of Rs 50,000. One aspect here is that if your bank does not have your PAN (Permanent Account Number), then 20 percent TDS will be deducted on the interest.

Understand with example, according to the tax service provider Clear, if a person gets interest of Rs 100 on which 10 percent of his tax is deducted i.e. Rs 10, then he can claim Rs 10 in ITR. However, he will have to inform the government about the full interest on which tax will be deducted.

Whose TDS will be deducted and whose not?

Suppose you have opened 2 FDs of Rs 1 lakh each in a bank, on which you get interest at the rate of 6 per cent in the first year, then you will get a total interest of Rs 12,000. The bank will not deduct TDS on this. At the same time, if an FD is of Rs 10,000,00 on which you have received interest of Rs 60,000, then TDS of 10 percent will be deducted on it, which you will be able to claim while filing ITR.