Income Tax on saving/fixed deposit account interest

[Asked by Guest]

Hi Members,

I am a NRI, working overseas for last 10 years. My age is 40. I am planning to come back to India and want to retire my self. I am planning to transfer all my saving to Indian currency and want to live on the interest earned from my saving/fixed account.

My major concern is the income tax that I have to pay on the interest that I am going to earn from my saving/fixed deposit account. The only source of income that I will be having is the interest earned from my saving/fixed deposit account.

Could anyone please advise how can i save income tax ?

If I start paying income tax on the interest earned on my saving/fixed deposit account then I will not be able to retire my self.

Appreciate all responses.

Regards,

Sam

Members, can anyone please advise me for this ?

[Srivatsan Krishnamachari]

Dear Sam,

Interest earned on a Bank Fixed Deposit will attract TDS @10% if such interest earned in a financial year is more than ₹ 10,000/- The bank will provide you with form 16A for the tax deducted as above said. This apart, up to ₹ 10000/ (Section 80 TTAIT Act)- is exempted from income tax on interest credited to your savings Bank account. If your taxable income is less than ₹ 5,00,000/- then a maximum of ₹ 2000/- as rebate will be deducted from the total tax payable (Please refer Section 87A of IT Act) Total tax payable depends on your income and tax saving investments you have made in the financial year concerned.You may please take help from Professionals like Chartered Accountants.

Regards,

K.S

[KRIPAL SINGH]

Hi Sam,

For more solutions to saving tax on interest income in India you need to talk on my below mentioned phone number. Please contact if you need more help on this topic.

Kripal Singh

9873705121

AI Summary

Tax on bank deposit interest: TDS may apply while savings interest exemptions and rebates can reduce overall liability.
Interest on bank fixed deposits is subject to TDS if aggregate yearly interest exceeds the prescribed threshold and banks provide Form 16A for amounts deducted. Savings account interest enjoys an exemption under Section 80TTA up to the statutory limit. A rebate under Section 87A can reduce liability for taxpayers below the prescribed taxable-income threshold. Total tax depends on overall taxable income and applicable tax-saving investments; taxpayers are advised to consult a chartered accountant for precise calculation.