Good Morning friends, Came across one important news today especially for Fixed Deposit investors in TOI (July 10) where it mentions that FDs have been earning a negative return in real terms for most of the preceding five years as inflation is outstripping interest rates. To make matters worse, depositors continue to be taxed on this nominal income. Given that long term deposit rates have not crossed 10% and the most deposits are in one-year bracket, it can be safely assumed that the weighted average deposit rates are not above 8.5% for the last two years. Currently tax exemption on interest earnings upto Rs. 10,000 applies only for SB deposits. While banks deduct only 10% tax on fixed deposits with interest above Rs. 10,000, the depositor is bound to pay tax according to his bracket and may have to top up his TDS will separate payment to the Government. So are you really earning what you deserve? What is your take on this. Pl share your views on our FB page.
Posted on: Wed, 10 Jul 2013 06:56:01 +0000
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