Calculating interest on fixed deposits is never easy, especially when the interest is met at the time of maturity. Moreover, calculating interest on a savings account can also seem like a cumbersome process. But if you want to avoid this process, a bank interest certificate can be very helpful for you. Learn how-
Fixed deposits are taxed. At the same time, if you earn more than 10 thousand interest on a savings account, you will have to pay tax according to the tax slab under 80 TTA. If interest rates are recognized every quarter of the savings, FDs have separate rules. For these two schemes, no matter how much money you receive in interest, you must download the certificate of interest through net banking at the end of the financial year. In this certificate, you are fully aware of how much and when you got the interest. If you do not use a Net Banking facility, in such a case, the information can be obtained from the nearest branch.
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In addition, you can also calculate the interest rate when you sit at home. In May 2020, Finance Minister Nirmala Sitharaman reduced it to 7.5% in May 2020, after seeing a 10 percent reduction in TDS in Corona Bank FDs. For example, if you get 5 lakhs FD at 5% rate, you get 25,000. In this, the TDS will be reduced by 7.5% to Rs 1,875. Banks do not deduct TDS in a savings account. The certificate can be downloaded from the bank’s website.