Should i pay tax on fd interest? What do you say?
Ideally you SHOULD. I wouldn’t recommend skipping your tax liabilities of course.
Tax is payable on the interest earned in the financial year from your fixed deposit. You need to declare that in your income tax return under ‘income from other sources.’
If you are someone below 60 years of age and your interest earned is more than Rs. 50000, the bank will deduct 10% TDS. In case you do not share your PAN details with the bank, the TDS will be deducted at 20% on interest earned above Rs. 50000.
Even if no TDS is deducted on your interest earned, you should declare your interest income in the ITR.
The hack to avoid TDS deduction is to submit Form 15g (Form 15 H, if you are a senior citizen) if your income is below the taxable limit.
I hope you have more clarity on the matter now. I would be happy to help in case you have any more questions.