04 Apr Money Controlling Making & Earning by Tax or TDS (Tax Deducted at Source) Saving Tips Ideas Tricks Ways Quotes on Banks FD (Fixed Deposits)
Maximum Money Controlling Making & Earning by Tax or TDS (Tax Deducted at Source) Saving Expert Master’s Advice Tips Ideas Tricks Quotes or Ways on Bank’s FD (Fixed Deposits)
On Fixed Deposit, how to save Tax and TDS (Tax Deducted at Source) for Maximum Money Controlling, Saving, Making and Earning.
Because of one of the safe option & good interest rates, fixed deposit always has been main option of investment for all investors which attract to all age group and economically different category people. That’s why, despite being of many different attractive investment alternatives, fixed deposit is still preferred choice of many investors for earning and making money through their investments.
If you are also going to do fixed deposit then keeping in view to some important points, you can save Tax and TDS (Tax Deducted at Source) amount. Simultaneously you increase your money making, saving and earning by adopting these simple points.
These points are as follow
Fixed Deposit in which Bank?
Always check and compare interest rate of different Banks. If any Bank is offering high interest for equal time period, then prefer that. But, here one important thing should keep in mind that as compared to nationalized semi government and private banks, new financial and foreign banks are offering high interest rate which easily attract to many investors.
Yet, it is better to select reputed nationalized semi government or any reputed private bank. Despite being some low interest rate, these are more trustworthy and safe.
Which way to do fixed deposit?
Fixed Deposit is done in two ways, one is cumulative and other is non-cumulative. Difference in both type of FD is this that in non-cumulative FD, interest is offered monthly, quarterly or six monthly without compounding calculation. On the contrary, in cumulative FD, interest is offered on principal amount at the time of maturity period with compounding calculation, it means you get more interest on cumulative type of FD.
For example, On One Lack Rupee’s FD, if interest rate is 8% Per Annum and calculation is done on quarterly basis then in case of Non-Cumulative Fixed Deposit after one year interest become Rs. 8000 (Total amount become Rs. 108000/-). On the contrary in case of Cumulative Fixed Deposit after one year interest become Rs. 8243 (Total amount become Rs. 108243/-)
Thus Cumulative Fixed Deposit is more beneficial.
How to save TDS (Tax Deducted at Source)?
If any person’s annual income is under tax exemption limit, then after doing FD, give Form 15 G or 15 H to Bank. Person aged under 60 year has to fill 15 G and Person aged above 60 year has to fill 15 H Form. After Submitting this form, bank does not cut TDS on FD. But, if this form is not submitted in bank then TDS have to pay on more than Rs. 10,000/- interest on fixed deposit.
When annual income goes above tax exemption limit then after giving PAN (Permanent Account Number) in bank with FD, 10% TDS have to pay on FD’s earned interest income, otherwise in absence of PAN, 20% TDS have to pay.
In case of Taxable Income, save TDS
If any person’s income is above tax exemption limit then obviously after doing FD, form 15 G or form 15 H cannot be given to bank for saving tax. It means TDS will have to pay on more than Rs. 10,000/- FD’s interest. But a person can also save TDS on his FD’s interest. If there is any possibility of Rs. 10,000/- or more interest on FD, then do not do FD in single bank. Divide FD’s amount in such a way and do FD in different separate banks that annual FD’s interest remain under Rs. 10,000/- in all banks.
Note it that TDS cannot be saved doing FD in different branches of a single bank. Banks should be different. Only then TDS can be saved.
How to save from tax?
There is not any exemption from interest on FD. Interest adds to a person’s annual income and TDS is calculated according to Income Tax Slab. There is exemption on tax up to Rs. 50,000/- interest on FD for above 60 year age people. If anyone want exemption in income tax under 80 C then minimum 5 year FD is mandatory. A person is entitled of exemption in tax for maximum Rs. 1,50,000/- annually under 80 C for doing 5 Years FD.
There is not any exemption of tax on 5 years FD’s interest income like normal FD.
If money is required in mid of FD’s maturity period
If due to any reason, money is required during maturity period of FD, then instead of breaking FD, take loan on FD. Mostly banks provide till 90% loan amount on FD’s value. Paying interest rate on loan is normally 2% to 4% more as compared to getting interest on FD. If anyone breaks FD during mid of maturity period then 0.5% to 1% penalty have to pay. Maximum time limit of paying loan is till maturity period of FD.
Below are all different pages’ links (including Objectives and About or Home Pages)
of this website (http://www.moneysavinginvesting.com/)
which contain useful information regarding money controlling saving investing (investment) making & earning expert master’s advice tips ideas tricks ways or quotes.
* ABOUT OR HOME PAGE OF MONEY SAVING INVESTING CONTROLLING EARNING AND MAKING EXPERT MASTER’S ADVICE TIPS IDEAS TRICKS WAYS OR QUOTES
* MONEY CONTROLLING MAKING BY ADOPTING KITCHEN LPG COOKING GAS, KEROSENE OILS, BIO FUELS & ENERGY SAVING EXPERT MASTER’S ADVICE TIPS IDEAS TRICKS WAYS OR QUOTES
* MONEY CONTROLLING MAKING BY TWO/FOUR WHEELER MOTOR VEHICLES’ PETROL, DIESEL, OIL, CNG GAS, BIO FUEL, ELECTRIC ENERGY SAVING/CONSERVING & MAINTENANCE CHARGES REDUCING EXPERT ADVICE TIPS IDEAS TRICKS WAYS OR QUOTES
* MONEY CONTROLLING SAVING MAKING BY ADOPTING ELECTRICITY ENERGY OR POWER SAVING/CONSERVING & ELECTRIC ELECTRICAL ELECTRONIC ITEMS’ MAINTENANCE COST REDUCING EXPERT MASTER’S ADVICE TIPS IDEAS TRICKS WAYS OR QUOTES
* MONEY CONTROLLING SAVING MAKING EARNING BY ADOPTING PHONE EXPENSES AND TV ENTERTAINMENT SERVICES CHARGES REDUCING EXPERT ADVICE TIPS IDEAS TRICKS WAYS QUOTES
* MONEY CONTROLLING SAVING EARNING MAKING BY SPENDING/EXPENSES REDUCING & FRUGALITY (OPTIMUM MONEY USES) EXPERT ADVICE QUOTES TIPS IDEAS TRICKS WAYS
* MONEY SAVING, CONTROLLING, MAKING, INCREASING & EARNING BY ADOPTING SOME EXPERT SMART/EFFECTIVE ADVICE TIPS IDEAS TRICKS WAYS QUOTES
* MAXIMUM MONEY CONTROLLING MAKING & EARNING BY TAX OR TDS (TAX DEDUCTED AT SOURCE) SAVING EXPERT MASTER’S ADVICE TIPS IDEAS TRICKS QUOTES OR WAYS ON BANK’S FD (FIXED DEPOSITS)
* 21 BEST INCOME TAX SAVING EXEMPTION REBATE WAYS TIPS IN 2020 FOR MONEY CONTROLLING SAVING INVESTING MAKING EARNING WAYS TIPS IDEAS TRICKS QUOTES
* POWER OF COMPOUNDING INTEREST FOR MORE MONEY CONTROLLING SAVING INVESTING INCREASING MAKING & EARNING TIPS IDEAS TRICKS WAYS QUOTES