If you want to save for your financial objectives without taking on too much risk but receiving guaranteed returns, a fixed deposit (FD) is the way to go. Knowing what you are going to get in return is also quite simple. You only need to utilise Bajaj Finance Fixed Deposit Calculator. That is why, fixed deposits are one of the most popular investment choices for most individuals who frequently earn interest on them.
Is fixed deposit interest taxable?
Yes, the interest earned on a fixed deposit is taxable. The interest earned is added to your income and taxed at the applicable income tax rate. It is important to note that the interest earned on a fixed deposit is taxable even if you have not made a profit on your investment. The tax on FD interest is deducted as TDS at the time of yearly interest credit. TDS is automatically levied by the bank on the interest received on your fixed deposit each year. Every year, a tax on interest earned is assessed to disperse the burden of tax payment. TDS is deducted by the issuer when interest is generated, not when interest is received.
The income tax on interest earned on a fixed deposit is calculated as per the income tax slab of the individual. The interest earned is added to the individual's total income and taxed accordingly.
How can you save tax on fixed deposit interest?
One way to save tax on fixed deposit interest is by investing in tax-saving fixed deposits. These fixed deposits are eligible for tax exemptions under Section 80C of the Income Tax Act. Another way to save tax on fixed deposit interest is by investing in a fixed deposit in the name of a senior citizen. Senior citizens are eligible for a higher exemption limit on the interest earned on a fixed deposit. With Bajaj Finance Fixed Deposit senior citizens can earn extra interest of up to 0.40% p.a. on the current FD interest rate.
With our FD calculator, you can easily calculate the return you will get on your amount for a chosen tenure. This will help you in deciding the amount and tenure for investment.
Opening a Bajaj Finance Fixed Deposit is a smart choice since you not only earn good returns, but your investment remains safe. With our [ICRA]AAA(Stable) and CRISIL AAA/STABLE ratings, our fixed deposits becomes one of the most safest investment options in the country.
