Is TDS Deducted On Post Office FD?

What is the interest of 1 lakh in post office?

India Post Office Fixed Deposit Calculator 2020TenureRatesMaturity Amount for ₹ 1 Lakh2 years 1 day to 3 years5.50% to 5.50%₹ 1,11,561 – ₹ 1,17,8073 years 1 day to 5 years6.70% to 6.70%₹ 1,22,081 – ₹ 1,39,4077 days to 1 year5.50% to 5.50%₹ 1,00,105 – ₹ 1,05,6141 more row.

Can I double my money in 5 years?

To get your money doubled in five years, the CAGR needed will be nearly 15 per cent (more preciously 14.87 per cent). However, there is no guaranteed-return product that offers such a high rate of return and the only possible way to achieve this is by taking risk.

What is TDS deduction in FD?

A bank or financial institution is required to deduct TDS (tax deducted at source) at 10% from the interest income you earn on your fixed deposits and remit it to the central government, if the interest income exceeds Rs. 10,000 in a financial year.. TDS is tax deducted at source.

How much money can be deposit in post office?

Single account holders can deposit a maximum of Rs one lakh while joint account holders can deposit a maximum of Rs two lakhs. One of the main features of a Post Office savings account is that there is no lock-in or maturity period.

How is TDS interest calculated?

For example Say that your payable TDS amount is Rs 5000 and the date of deduction is 13th January. Say you pay TDS on 17th May. Then the interest you owe is Rs 5000 x 1.5% p.m. x 5 months = Rs 375. “Month” has not been defined in the Income Tax Act, 1961.

Is 5 year FD tax free?

Only Individuals and HUFs can invest in tax saving fixed deposit(FD) scheme. … The maximum amount is of course Rs 1.5 lakh in the financial year which is the ceiling for tax saving investment under section 80C of the income tax Act. These deposits have a lock-in period of 5 years.

Which scheme is best in Post Office 2020?

Sukanya Samriddhi AccountInstrumentInterest rate (%) from October 1, 2020Max amt (Rs)Senior Citizen Saving Scheme7.415 lakhSukanya Samriddhi Account7.61.50 lakhPublic Provident Fund7.11.50 lakh per annum5 Yr NSC-VIII Issue6.8No limit6 more rows•6 days ago

How many years FD will double in post office?

10 yearsHow many years will FD double in the post office? At the interest rate of 7%, a post office fixed deposit investment will double in 10 years and four months.

Is Post Office FD taxable?

Post Office Time Deposit Scheme: Post offices also offer tax-saving time deposit with a maturity period of 5 years carrying 8.50% per annum interest rate. The interest is payable annually but compounded quarterly. Also, though the interest paid is taxable but TDS is not deducted by the post offices.

Is TDS deducted on fixed deposit?

TDS on interest from Fixed Deposits TDS is automatically levied on your fixed deposit by the bank in which you have your FD account. … However, TDS is deducted by the bank only if your fixed deposit returns exceed Rs 40,000 (Rs 50,000 for senior citizens) in a year.

Which is better Bank FD or Post Office FD?

Post office time deposits The interest earned is fully taxable and to be added to one’s ‘Income from other sources’ as in the case of bank FD. There is complete safety as the entire amount in post office time deposit is backed by a government guarantee. Even the interest rate is higher than bank FD in most cases.

Is FD tax free?

According to current income tax laws, under Section 80C of the Income Tax Act, you can claim deduction for investments up to Rs 1.5 lakh in a financial year in tax-saving fixed deposits (FDs). The amount so invested is to be deducted from gross total income to arrive at the net taxable income.

Is TDS applicable on post office term deposit?

No TDS is deducted on either Time Deposit (FD) or Recurring Deposit (RD) made with a post office. Senior Citizens (those above 60) can get up to Rs 50,000 per year in FD interest tax-free and no TDS will be deducted for interest received up to Rs 50,000 per annum for them.

How can I get TDS refund?

You need to file a TDS refund claim when the employer has deducted more tax than the actual liability. You can claim the difference amount by filing an income tax return. You will have to provide the bank account number, name of the bank, and Indian Financial System Code (IFSC) details for successful processing.

Is Post Office FD safe?

However, post office term deposits are totally risk-free as they are backed by the government. Bank FDs are insured only up to R1 lakh. … If you are looking for a safe investment, bank FDs are suitable for you.