Is the interest earned on FDs taxable?
Yes, the interest earned on fixed deposits is taxable according to your tax slab.
In case the interest accrued at a bank in a given financial year (April 1st to March 31st) is ₹40,000 or above, a 10% TDS is applicable on the entire interest earned, which the bank deducts automatically.
To avoid TDS deduction, you can submit tax exemption certificates (Form 15G/H) at the bank. For details on your specific tax liability, it is advisable to consult a tax advisor.
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