Rd interest

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Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2016 whether RD interest is liable to tax and is there any limit for taxability?

Expert : Anonymous

Expert : Anonymous (Expert)

01 December 2016 TDS on Recurring Deposits would be deducted @10% of the Interest earned. Earlier, TDS was not deducted on Recurring Deposits but with effect from 1st June 2015 – TDS on Recurring Deposits would be deducted @ 10% under Section 194A Budget 2015 has introduced an amendment to Section 194A and now the meaning of the word Term Deposits includes Recurring Deposits and therefore TDS @ 10% would be applicable on Recurring Deposits. However, No TDS would be deducted on Interest earned upto Rs. 10,000 to safeguard the interests of the small depositors.

Unnikrishnan B

Unnikrishnan B (Expert)
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02 December 2016 And also even if TDs is not deducted the income us taxable under income from other sources. You have to add this income with other income .

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Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2016 thank you sir for your reply....