Latest News on Recurring Deposits, Now TDS to be deducted on RD’s if your earning interest exceeds Rs.10000 per year. TDS @ 10% would be deducted by the bank.
What is Recurring Deposit?
RD is the scheme in which you have to deposit a sum or fixed amount of money every month in bank. RD tenures starts from 6 months to 10 years. It varies from Banks to Banks.
Before RD’s Fixed deposits in Banks & Post offices comes under TDS.
Here’s a good news for Non Taxable persons / investors – Submit Form 15G to avoid TDS on RD & Fixed deposits in banks, Senior citizens have to submit FORM 15H.