If you have FD in a bank, know this important news, otherwise there will be a big loss
Of all the types of savings schemes, fixed deposit is the most preferred scheme. Learn about this change if you have an FD.
➡️Work news for people doing FD
➡️ Fixed deposit is the most preferred scheme
➡️Know this rule otherwise there will be damage
People of all ages love this method of saving. The big reason for this is that it is safer and less risky than other schemes. It can be invested in short to long term. Today we will give you information about FD related rules, including tax. With that in mind you can easily take better advantage of this savings plan.
There are two types of FDs
There are usually two types of FDs.They pay interest on a quarterly and annual basis. However, you can also avail interest at regular intervals.
The benefits of investing in a fixed deposit
➡️Fixed deposit is considered as one of the safest investment options.
➡️There is no risk on the money deposited in this. With this you can also get compensation in due period.
➡️Theoriginalamountinvested in it remains safe as there is no direct effect of market fluctuations on FDs.
➡️Investors can avail monthly interest in this scheme.
➡️The interest rates available on FDs are usually higher. It offers the highest compensation for senior citizens.
➡️You only have to invest once in any FD. If the investor wants to deposit more after this, he has to open a separate FD account.
➡️FDs have a maturity period, you have to deposit money for many years. But there is also an advantage that you can withdraw money ahead of time if needed. However if you break the FD before maturity you will not get your interest, you will have to pay a small penalty on it.
What is the rule of tax deduction on FD
There is a tax deduction of 0 to 30 per cent on a fixed deposit. It is deducted on the basis of the investor’s income tax slab. If you earn more than Rs 10,000 in a year, you will have to pay 10 per cent tax on your FD.If PAN card is not submitted, 20 per cent TDS is deducted on it. If the investor wants to avoid tax deduction, he should submit Form 15A to his bank for this. This applies to those who do not fall into any income tax slab. Senior citizens should submit Form 15H to avoid tax deductions.
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