How Much Fixed Deposit (FD) Interest is Tax-Free in India?
Discover how much interest from Fixed Deposits is tax-free. Learn the limits under Sections 80TTA and 80TTB for individuals and senior citizens.
960 views
Interest earned on Fixed Deposits (FDs) is taxable. However, up to ₹10,000 per year from all FDs is tax-free under Section 80TTA for individuals below 60 years. For senior citizens, the limit is increased to ₹50,000 per year under Section 80TTB. Ensure you include FD interest income in your tax returns and use these sections for tax benefits.
FAQs & Answers
- What is the tax-free limit for FD interest for individuals below 60? Individuals below 60 can earn up to ₹10,000 per year from Fixed Deposit (FD) interest tax-free under Section 80TTA.
- What is the tax-free limit for FD interest for senior citizens? Senior citizens can earn up to ₹50,000 per year from Fixed Deposit (FD) interest tax-free under Section 80TTB.
- Do I need to include FD interest in my tax returns? Yes, it is important to include FD interest income in your tax returns to comply with tax regulations.
- How does Section 80TTA help with FD interest taxation? Section 80TTA allows individuals below 60 to claim a deduction of up to ₹10,000 from their total income for interest earned on FDs, thereby reducing taxable income.