Many big banks including IDBI, Bank of India (BOI) and Federal Bank have recently increased fixed deposit (FD) interest rates. If you are planning to get FD these days, then you must know about the new interest rates of banks before this. We are telling you how much interest is being given by which bank on FD less than Rs 2 crore. So that you can invest at the right place as per your convenience. See here where FD will be more beneficial after the change in interest rates. Tax has to be paid on the interest received from FD also. The interest received from FD is completely taxable. Whatever interest you earn on FD in a year is added to your annual income. Based on the total income, your tax slab is determined. Since the interest income earned on FD is considered “Income from Other Sources”, it is charged under Tax Deducted at Source or TDS. When your bank deposits your interest income into your account, TDS is deducted at the same time. Let us know some points related to tax on FD:
