How calculation works for - Tax on Fixed Deposit Interest?

[saurabhmodh94]

I was trying to understand how is tax calculated on the interst of fixed deposit.

Consider following annual scenario for example:

Person-non-senior citizen
Salary-12 lac
Taxable Income- 9 lac
Tax slab - 20%
Bank- ABC Bank
FD Interest - 60000
Simple Interest - 15000

Now I read that about till 40000 interst there's tax exempt for non-senior citizen. So question is,
how much tax is applicable here? Also, in form 26AS or other document where it reflects?

PS: Also, How is 80TTA 10000 excempt releated with interest?

 

[luciferocious]

FD interest goes into tax slab
Simple interest up to 10k is not taxable under 80TTA

I am no tax expert fyi

 

[saurabhmodh94]

@luciferocious correct. But could you please help me with exact amount for the given example. Also, where it reflects.

FD interest goes into tax slab

 

[abhiver]

You are filling tax under new regime or old

 

[Tax with Ria]

I was trying to understand how is tax calculated on the interst of fixed deposit.

Consider following annual scenario for example:


Now I read that about till 40000 interst there's tax exempt for non-senior citizen. So question is,
how much tax is applicable here? Also, in form 26AS or other document where it reflects?

PS: Also, How is 80TTA 10000 excempt releated with interest?

Interest on FD is fully taxable.
And you can claim exemption under section 80TTA of 10000 (50000 in case of senior citizen under section 80TTB).
80TTA/TTB covers claiming deduction of interest on FD, POST OFFICE, SAVING BANK ACCOUNT

 

[saurabhmodh94]

You are filling tax under new regime or old

@abhiver old tax regime

 

[abhiver]

In that case you can bring down your taxable income by 1.5 lac more using sector 80C deduction.

Anyways, to answer your core questions, you need to include FD interest into Income from Other sources , so your Taxable income will increase by 60,000. Also you have normal interest of 15,000. Out of which you can claim 10K deduction under 80TTA, so your Income from saving interest is 5,000.

Hence total taxable income will be 965,000.

As you are in Old regime, try to pay Health Insurance for yourself and your family so that you can use that deduction as well and bring down taxable income around 5 to 6 lakh. It will give good saving.

Otherwise switch to New Regime. Your tax will be lower there.