Dear Sir
I am a senior citizen, and I am not working anymore. Me and my sister (she is also not working from longtime and she is around 55 years old) both opened Joint Fixed Deposit in the bank on 02.12.2014. I am the first depositor and she is the second depositor. Now we are sharing the fixed deposit income equally since we both have invested 50:50 in this fixed deposit. So that's the reason we are sharing interest, and we also advised the bank not to deduct the TDS because we both are not working and we don't have any other source of income. Based on our instructions, the bank is not deducting the TDS, and they pay full interest every month and we are submitting the form 15G and 15H every year.
Now my question is, if the interest income crosses the taxable limit, do I have to pay the tax, because I am the first depositor of the FD.
With regards,
Manju
1 Answers
Hi,
Interest income on FDs/RDs is a taxable income. So, it has to be added to your total income under the head 'income from other sources' and calculate your tax liability (if any). Both of you can share the tax liability.
Kindly read below articles.
http://www.relakhs.com/recurring-deposit-taxes-bank-fd-rd-interest-itr/
http://www.relakhs.com/misconceptions-on-tds-tax-deducted-at-source/
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