Stratégies de placement: Comment puis-je économiser de l'impôt sur les intérêts produits par un dépôt à terme (FD)?

Gopal Kavalireddi

Gopal Kavalireddi, Providing Investment strategies for stocks and mutual funds

Mise à jour il y a 64w · L'auteur dispose de réponses 1.7k et de vues de réponses 17.9m

Banks deduct TDS on interest only if the interest amount for an FD greater than Rs.10,000 per year. The rate of TDS deducted by banks is 10% on interest income, provided your PAN number is available with the bank. If the bank doesn't have your PAN in its records, TDS is deducted at 20% on interest income.

Earlier you could avoid TDS by splitting the deposit into separate banks in such a way that interest earned from any of the FDs does not exceed the Rs 10,000 limit. But during the tax filing process, your auditor will come to know of it through 26AS and will ask you to furnish the details of all deposits in all banks. You might end up paying the tax at that time.

The few ways you can save tax on the interest earned in an FD by:

By submitting Form 15G/15H (not for salaried/profitable business owning persons)

If an investor submits Form 15G stating that he has no taxable income, the bank would not deduct any TDS on the interest earned. For senior citizens, the requisite form to avoid TDS is 15H.

Timing the FD

You can also save TDS by timing your FD in such a way that interest for any of the financial years does not exceed Rs 10,000.

For example, a 12-month fixed deposit of Rs 1.5 lakh at 7.5 per cent could be started in September as financial year closes on 31st March. This way, the interest would split in two financial years, and hence TDS will be avoided.

Splitting the FD

An individual can start one fixed deposit under his/her personal bank account and another one under an HUF account or in a spouse account. Both accounts will be treated as separate. An investor with an HUF identity can split the corpus under such two heads.

Beyond this, there are no other ways to save tax on the interest earned.

Source credits: taxguru and bank related sites


IndianMoney, Learn to Save, Spend, Invest, Borrow Wisely with IndianMoney

Répondu il y a 106w · L'auteur dispose de réponses 875 et de vues de réponses 2m

"The avoidance of taxes is the only intellectual pursuit that carries any reward." - John Maynard Keynes

Yes, avoiding taxes brings meaning to your life. John Maynard Keynes, sure knew what he was talking about. Now, fixed deposits are a highly popular investment, for you and several of our citizens. Investing in a fixed deposit, not only brings you decent risk free returns, you also have an opportunity to save tax. But there’s a small http://problem….to avail tax benefits on fixed deposits, you need to study the tax benefits on FD’s. Too busy to do so…Well, get ready to pay your hard earned money, in tax.

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Stratégies de placement: Comment puis-je économiser de l'impôt sur les intérêts produits par un dépôt à terme (FD)?

Save tax using the tax saving fixed deposit

If you want to save taxes on fixed deposits….there is a powerful friend, who can help you do the job. Yes, the Government has given you the benefit of Section 80 C deductions, on your investment in a fixed deposit. But there’s a catch….You get the tax benefit, only if you invest in a tax saving fixed deposit. If you invest money in an ordinary FD, there is no tax benefit.

What is this tax saving fixed deposit? You get a tax deduction under Section 80 C of the income tax act, up to INR 1.5 Lakhs in a financial year, if you invest your money in a tax saving fixed deposit. The tax saving fixed deposit also called tax saver FD, has a tenure of 5 years. What does this mean? You cannot withdraw from the tax saver FD, until maturity. Your money is locked for a time period of 5 years.

Rappelez-vous: You get this tax benefit only on tax saver FD. You cannot avail a loan against tax saver FD.

What about the interest you earn on the tax saver FD? Unfortunately, the interest you earn is taxed, just like any ordinary fixed deposit. The interest you earn is added to your taxable salary and you are taxed, as per the income tax slab, you fall under.

Avoid TDS on fixed deposits

Find tax deducted at source, popularly known as TDS, too difficult to understand? Well it’s not. It’s just tax on the interest earned on your fixed deposit. Your bank would cut TDS, if the interest you earn on your fixed deposit, is more than INR 10,000 in a financial year. The TDS is cut at the rate of 10%, on the interest you earn on the FD. Still not clear…..Check out this example.

You have invested INR 3 Lakhs in a fixed deposit, for a time period of 3 years. The bank pays an interest of 7.5% a year. You earn INR 22,500 in interest for the first year (3 Lakhs @ 7.5%). The bank will now deduct TDS at the rate of 10%, on the interest you have earned from the FD (INR 22,500 @ 10%). The remaining interest income of INR 20,250 is reinvested.

Remember: The TDS collected, is deposited on your behalf with the tax authority. If you do not provide your PAN, then TDS will be deducted at 20%.

Now to the big question….How to avoid paying the TDS?

  • If your total income is below the minimum income tax slab of 10%, you can claim a tax refund on TDS deducted by bank, at the time of filing taxes. (If you are below 60 years, the minimum income limit on which no tax is applicable is INR 2.5 Lakhs. If you are between 60-80 years, the minimum income limit on which no tax is applicable is INR 3 Lakhs. If you are above 80 years, you do not have to pay any tax, on income below INR 5 Lakhs).
  • There is another way you can escape the TDS net. You need to submit “Form 15 G” to the bank. You declare that your taxable income for the year, is below the minimum tax slab. You request the bank, not to deduct TDS on the interest, you earn from the FD. If you are a senior citizen, you have to submit “Form 15 H” to the bank. Now the bank will not deduct TDS, on your fixed deposit interest.
  • There is another way, you can avoid TDS. Simply split your fixed deposit across banks, so that the interest you earn from any of your FD’s, does not exceed the INR 10,000 limit.

Tax evasion is a crime. Tax avoidance is not. You are considered wise, if you study the tax rules and save your hard earned money from tax. A rupee saved is a rupee earned. Save your taxes and gallop on the path to riches.


How To Avail Tax Benefit On Fixed Deposits

Arjit Gupta

Arjit Gupta, Founder of | Chartered Accountant

Répondu il y a 171w

There is no option to save tax on Interest on FDR but you can avoid TDS on FDRs, because the interest earned from Fixed Deposit (FD) is first included in Total Income along with other incomes and then tax is calculated asper income tax slab rates.

Concept of TDS on Interest on FDR

If interest paid by bank on Fixed deposit (FD) is more than Rs. 10,000 in a financial year then TDS @ 10% will be deducted.

For example, if Miss Poonam earned interest of Rs. 20,000 in one year from a fixed deposit then bank will deduct TDS at 10. % on interest earned as her interest is more than Rs. 10000. And, thus she will get Rs. 18000 from bank after TDS deduction.

Note that if the same bank is paying interest from different branches then the bank will immediately deduct TDS as soon as the aggregate of Interest paid by all the branches crosses Rs. 10,000 in a financial year. For eg. If Saahil is having FDRs at Juhu Branch of SBI Bank and Marine Drive Branch of SBI bank then TDS will be deducted if total of interest paid by SBI-Juhu and SBI- Marine exceeds Rs. 10,000. If the FDRs were at different bank , say 1st FDR in SBI and the 2nd FDR at PNB then no TDS would have been deducted

How to avoid TDS on Interest

There are multiple ways through which one can save TDS or rather avoid TDS on interest earned on Fixed Deposit (FD). These are discussed below.

By Submitting Form 15G/15H: Taxpayer can save TDS deduction on the interest earned by Bank if he submits Form 15G stating that he does not have any taxable income. Senior citizens can submit Form 15H to avoid TDS deduction.

You are eligible to fill Form 15G and 15H if the final tax on estimated total income computed as per Income Tax Act is nil.

Please visit the following guide authored by to get complete detail about Form 15G/15H.

By Splitting FD investment into Multiple Bank: One can avoid TDS deduction on interest earned on Fixed deposits if he splits the deposit into separate bank in such a manner that the interest paid by each bank does not exceed Rs. 10,000. For eg. If Rohit wants to invest Rs. 2,00,000 then he can invest Rs. 70,000 in say in ICICI Bank, the other 70,000 in HDFC and the remaining amount of Rs. 60,000 in IDBI bank. Thus the interest earned on fixed deposit from any of the FDs will not exceed Rs. 10000 limit. This way, none of the bank will deduct TDS on interest payment.

Amol Satav

Amol Satav, About Indian Banking and Finance

Répondu il y a 72w · L'auteur dispose de réponses 97 et de vues de réponses 151.5k

With Tax Saving Fixed Deposit, you can claim the amount invested up to Rs. 1.50 Lakhs as a deduction from your income. So, to calculate your taxable income, you reduce the amount of your Tax Saving FDs from your total gross income; and, that is how you get your taxable income. The tax benefit or deduction which you get for your tax saving FDs is under Section 80C of the Income Tax Act, 1961.

How Tax Saving FDs are different from Regular FDs?

The only additional benefit of a Tax Saving FD over a regular FD is that the original amount you invest in a Tax Saving FD is exempted from taxes. Also, you can claim a tax deduction under Section 80C of the Indian Income Tax Act, 1961 while filing income tax returns. However, the interest income that is generated from Tax Saving FDs is subject to the same tax rules as any other regular FD.

Recommended Read : Calculation of Income Tax on FD and RD Interest !!!

Lisez aussi: How to save Money through SIP?

What are schemes for fixed deposits under Section 80C?

Fixed Deposits schemed under Section 80C of the Income Tax Act, 1961 are named as Tax Saving Fixed Deposits. You get tax deductions up to Rs.1.50 Lakhs per year under Section 80C of the Income Tax Act, irrespective of your tax bracket. Also, Section 80C can be used to avail deductions on a number of investments or expenditures such as PPF, NSC, child education fees, infrastructure bonds, pension funds, tax saver fixed deposits, senior citizen savings scheme (SCSS), unit linked insurance plans (ULIP), life insurance premiums, home loan principal, etc. Most relevant is that Section 80C provides cumulative deductions up to Rs.1.50 lakhs per year from all investments in relevant instruments.

Features of Tax Saving FDs:

Major features of Tax Saving FDs are:

  • Fixed maturity of 5 years.
  • Minimum investment must be Rs.100. Further, investments can be made in multiples of Rs.100 only. This limit may vary from bank to bank.
  • The maximum limit of investments Rs.1.50 Lakhs.
  • Interest rate will be as per your bank or financial institution.
  • Individuals including senior citizens and NRIs; and Hindu Unified Families (HUF) can open this account.
  • In case of joint accounts, only the first holder will get tax deductions as per the section 80C of the Income Tax Act, 1961.
  • Premature withdrawal is not allowed.
  • You cannot avail loan against your tax saving fixed deposits.
  • Your interest from FDs are taxable. TDS is charged at 10% pa, if you have given your PAN details to your bank, else TDS will be charged at 20% pa.

Recommended Read : Calculation of Income Tax Deduction on FD and RD Interest !!!

Lisez aussi: Which Banks offer Higher Rate of Interest on Deposits in India?

Benefits of investing in Tax Saving FDs:

Tax saving FDs come with lot of benefits. You can get more out of your investments through Tax Saving FDs. Though, there are a few limitations as well, such as you cannot withdraw premature and you can’t avail loan against it, etc. However, at the same time, there are many benefit from the same:

  • The major benefit of investing in tax saving fixed deposit is that it helps you save income tax.
  • Open throughout the year; unlike, tax free bonds issued by the government from time to time.
  • You can start investing with as little as Rs.100 and add to your savings.
  • Also, you can avail a tax benefit on amount invested up to Rs.1.50 Lakhs per year.
  • You can take advantage of interest paid out on monthly or quarterly basis.
  • Special rates are available for senior citizens, depending on bank.
  • Secure investments for the medium term.
  • Since, premature withdrawal is not available in case of tax saver fixed deposits, you can be sure of receiving assured returns, apart from saving tax.
  • Also, nomination facility is available. You can nominate or authorize someone to withdraw your deposit before or post maturity in the event of your death.
  • And, Tax saving fixed deposits may not earn you as high as some other tax saving investment avenues; such as tax saving mutual funds or insurance policies, these will ensure that you have a peace of mind while investing your hard-earned savings, and get assured pay-outs at regular intervals

Stratégies de placement: Comment puis-je économiser de l'impôt sur les intérêts produits par un dépôt à terme (FD)?

Eligibility to open a Tax Saving FD?

  • All resident individuals who have a pan card.
  • Non–resident Indians (NRIs).
  • Senior citizens above 60 years of age.

Gauri Sankar

Gauri Sankar, Retd.banker, formateur, écrivain, consultant en

Répondu il y a 99w · L'auteur dispose de réponses 2.9k et de vues de réponses 9m

Thee should be some correction in your question

It should be - How can I save tax on my income?

Because interest earned from fixed deposit is also part of your income.

You may be getting income from different sources

  • Income through salary
  • Interest income from savings deposit accounts
  • Interest income from fixed deposit
  • Rental income from house property
  • Any other professional income

You have to add the entire income from the above sources earned from 1st April to 31st March,

Suppose your total income is 450000 including interest on savings deposit and fixed deposit

Interest from savings deposit - 12000

You had made the following investments - LIC premium paid: 12000; Public provident fund: 50000; Tax savings bond-100000

Your employer had deducted provident fund contribution from your salary - 18000

TDS on fixed deposit deducted by the banker - 1200

Income tax deducted by your employer - 6000

The following is the calculation:

Total income - 450000

Less - Rebate on savings interest - 10000

Balance amount - 440000

Less rebate on account of investments on tax savings instruments - (12000 + 50000+ 100000+ 18000) = 180000 restricted to 150000

Residual income - 440000 less 150000 = 290000

Basic tax exemption - 250000

Taxable income - 40000

Tax at 10 percent - 4000

Education cess at 3 percent of tax - 120

Total tax - 4120

Tax deducted by employer plus TDS = 7200

Balance to be refunded to you = 7200 less 4120 = 3080

Suggestion: 001

Instead of normal fixed deposit, if you invest in tax saving fixed deposit for which the lock in period is five years, the entire investment (upto 150000) can be considered as rebate on tax saving instruments.

The indirect savings of tax by this method will be like this - If you are within 10 percent tax bracket, you save 1500 (150000 x 10 percent)

Stratégies de placement: Comment puis-je économiser de l'impôt sur les intérêts produits par un dépôt à terme (FD)?

; 20 percent means 3000 and 30 percent means 4500

Suggestion: 002

In case you are not having any other income except fixed deposit interest and/or your total income is lesser than 250000, you can submit Form 60/61 to the banker for not deducting TDS on fixed deposit interest

Harleen Kaur

Harleen Kaur, CA, Likes discussing about Investment topics, Co-founder @

Mise à jour il y a 114w · L'auteur dispose de réponses 733 et de vues de réponses 3.2m

You can save tax on interest earned on Fixed Deposits in the following cases :

1.If you don’t have any other taxable income : So,if FD interest is your only income and it is upto Rs.250000(for individuals below 60 years) or Rs.300000(for senior citizens) or Rs.500000(for super senior citizens) as per Individual slab basic exemption limits.

2. If you have other income but your total income is not taxable : If your total income is below the basic tax exemption limits,then also you are not liable to tax.

In such cases,you can submit Form 15 G or Form 15 H so that there is no deduction of TDS by banks. In case bank has deducted TDS,you can claim refund.

3.If your FD interest does not exceed Rs.10000 : Banks deduct TDS in case the FD interest exceeds Rs.10000,so if your interest is lower,no TDS shall be deducted.But,you will have to check further for taxability of your total income.

For additional details you can refer Fixed Deposit,FD Interest,Tax on FD - A complete guide!

4. By utilising the benefit of Tax deductions : If you plan your investments wisely and utilise the tax benefits of various deductions,you can save some of your taxes.

Interest on FD forms part of your “Income from other sources”.This income forms part of your total income.The tax is calculated on your total taxable income as per Income tax slab rates. So,if you fall in the higher tax bracket say 20% or 30% you will have to pay extra taxes on your income(including interest on FDs).

e.g.If the limit of section 80 C is fully utilised upto Rs.150000 then you can save some additional amount on taxes.For additional details you can refer Tax Deduction U/s 80 C

5. By diversifying your funds : Keeping all your money as Fixed deposits won’t fetch you high returns in the long run. So,putting your funds in other tax saving options like PPF,ELSS etc.might help you save some of your taxes.

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