Tax Rules on FD: There are many options for investment in today’s time, but despite having many options, Indian investors trust Fixed Deposits the most.
This is the reason why even today Fixed Deposit (FD) is one of the favorite investment schemes of Indians. Most of the people in the country consider Fixed Deposit as the safest investment option. Due to which the craze of FD continues.
Guaranteed returns on investments in FD
People who want to invest without any risk often choose FD schemes. You get guaranteed returns on FD. This means that when you invest in FD, you get a fixed return on your investment with guarantee. Along with this, investors also get many benefits.
However, many investors are not aware of the benefits of FD. We are going to tell you about one special benefit.
TDS will be deducted on income from FD
TDS has to be paid on the interest received from fixed deposits i.e. FDs (FD Interest Rates). The interest received on FD i.e. the income from FD is added to your total income. In such a situation, when the income through interest on fixed deposits exceeds the prescribed limit, then TDS (TDS on Fixed Deposit Schemes) is deducted from it.
According to the rule, if the income earned through interest on FD (FD Interest Rates 2024) is more than Rs 40,000 in a financial year, then you will have to pay 10 percent TDS.
These are the benefits of getting FD in the name of wife
However, there are many ways to save TDS. There is one way in which you do not have to do anything. If you want, you can avoid paying tax with the help of your wife . Just get an FD done in your wife’s name and you will be able to save tax worth lakhs of rupees. But very few people know that if they get an FD done in their wife’s name instead of their own, then they can save a lot of tax (Tax Exemption on FD in 2024).
If you are married and are planning to invest in fixed deposits then this news is for you. Here we will tell you why you should get FD done in the name of your wife.
How can you save tax with the help of your wife
Actually, if a woman is a housewife, then she is not liable for any kind of tax. That is, housewives have to pay zero tax. If your income comes under the scope of income tax, but your wife is a housewife, then in such a situation you can avoid paying TDS by getting an FD done in the name of your wife.
Apart from this, if your wife’s income is less and she falls in the lower tax bracket, then you can also avoid paying TDS (TDS on FD Interest) by getting an FD done in her name. For this, your wife will have to fill Form 15G and she can avoid paying TDS.
At the same time, there is another way by which you can avoid TDS deduction on FD. If you make a joint FD with your wife, then you can also avoid paying TDS as well as higher taxes, but while making a joint FD, you will have to make your wife the first holder.
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