TDS is deducted on income from FD. According to the rules, if the interest earned from FD is more than Rs 40,000 in a financial year, then you will have to pay TDS of 10%. Whereas, for senior citizens this limit is Rs 50,000.
Fixed Deposit: We all do different types of financial planning for the new year. Some buy a house on the new year, some a car. Some go for a trip with the family, some start investing. If you are also going to start investing on the new year, then we have brought a great tip for you. Usually it is seen that people make FD in the name of their wife. If you make an FD in the name of your mother instead of your wife, then you can get many other benefits along with a huge interest. Let’s know.
You will get more interest on making FD in the name of mother
If you make an FD in the name of your wife, then you can definitely save tax. But always keep in mind that on making an FD in the name of your wife, you will get the same interest as you get. On the other hand, if your mother is 60 years of age or more, then you will get 0.50 percent more interest on the FD made in the name of your mother. Not only this, if your mother is 80 years of age or more, then you will get 0.75 to 0.80 percent more interest.
Exemption in TDS limit also
Apart from this, TDS is deducted on the income from FD. According to the rules, if the interest received from FD is more than Rs 40,000 in a financial year, then you will have to pay TDS of 10%. At the same time, this limit is Rs 50,000 for senior citizens. That is, getting FD in the name of mother will also be beneficial here. Not only this, if you get FD in the name of your mother, then you can also save your tax.
Your tax liability will also decrease
Actually, the income from FD is added to your total income. In such a situation, you will have to pay more tax. Very few people notice that if they get FD done in their mother’s name, they will not only get more interest but can also save a lot of tax. Generally, most of the women in ordinary families either fall in the lower tax bracket or they are housewives. Housewives who do not have any income do not have any kind of tax liability.
