Secret Way To Save Tax !

FD interest rates are so high right now that people have dumped the stock market. At 7-8% interest rates I can understand why.

The only problem is that the way FDs are taxed it severely impacts the compounding effect. Meaning, if your profit in FD in a given year exceeds ₹40,000 then tax is deducted at 10%. This is deducted on a yearly basis irrespective of whether it’s a 2 or 5 year FD.

How to avoid?

I’m assuming everyone here makes more than 2.5L per annum. So submitting form 15G/ Form 15H is of no use to you.

The only hack left is to divide your FD in multiple banks. Don’t keep more than 6L in a single FD. Why? Because at 7% interest rate that comes to ₹42,000 profit so ₹4,200 tax will be deducted. Instead divide the 6L into 2 banks.

7% interest on ₹3L is only ₹21,000 profit which is below the tax limit and hence no tax will be deducted.

👉🏻 Note: You still have to pay the who tax as per income slab filing taxes. But then you can pay from your savings account instead of it being deducted from FD since it has higher interest rate.
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#financewithsharan #fixeddeposit #bank #tax #taxes #moneymanagement #moneytalks

[rakrshbhankur]

PAN card and aadhar card linked bank account have gone for evening walk

[nileshmotwani]

This fellow is going to get a nice surprise when he files his IT return at the end of year

[nikmat]

Form 15g/h and ITR-tds claim left the chat.

[yashbudhia]

mummy, sister, brother, grandparents- put some money on everyones bank account as fd

[Gous.English]

0% Logic, 100% Fun, -100% Loss, 0% Profit

[pavankumar-cuno]

How about 26AS, it captures everything.
Banks may not deduct tds but you have to pay tax for sure 😊

[thelawlearners]

But still interest income will become a part of my earnings and then be taxed. The IT gets hold of all saving/fd's in the name of the person

[RounakDuttaRkD]

I don’t understand the confusion in the comments.

1. Yes you can get the TDS deducted back through filing it return but the TDS amount deducted will credited to your account separately won’t get compounding on the TDS amount.

10, 00, 000 deposited
7% interest earned 70, 000
7000 TDS deduction
So for the next year you’ll get interest on 10, 63, 000. Where as if you follow this step you’ll get interest on the entire 10, 70, 000. Granted you divide your money in two accounts.

2. Yes you will ultimately need to pay tax on the interest if your income slab is taxable but paying it separately it still better as the entire interest money is compounded.

[Melquis_Goa]

But still the interest will feature in your AIS ( Annual information statement) you anyway have to pay tax depending on your tax slab

[MonkeDluffy-rsqk]

Me who understands nothing but still enjoys: *I like your funny words magic man*

[RexDekaster]

Or file 15g/15h to avoid paying tds till 250000/- interest income.

[yourock]

while fiiling IT returns it calculates all the bank accounts TDS, and tells us if there is any difference or more tax needs to be paid. so do u still think that IT dept skips this interest amount there ?As all bank accounts now are connected via PAN and Aadhar now?

[NehaSharma-inkf]

The comment section did not get the point. He is not teaching you to evade tax altogether, he is teaching you the trick to avoid TDS deduction at Bank level so that you won't have any loss in compound interest of your FD.

[SachinDevkota]

Beside financial advices, your videos (comedy) also makes people smile and boost their mood!!

[chaitubandi]

Meanwhile me searching for lotak in my area 🤣

[vinuth]

I think “Poppa” is going to lose some money if he didn’t subscribe to your channel 😂😂

[rakeshr]

I think he meant that the banks will not cut tds. Sharan never said it is non taxable. However, it is the individual's duty to file the income from fd etc in the ITR.

[srk]

While paying tax you need to mention all sources of income so you need to pay TDS, the real option is keep this money on two people instead of single person

[sambitkoley]

This is utter bullcrap. Even when you divide the sum, in AIS it shows up and you have to pay the tax in full.
This actually happened to my father with the same scenario. Different banks, diff FDs, but IT sent a notice to pay the outstanding tax amount near about 65k.

[Ajay-kmmr]

While filing ITR person needs to update interest earned from FD and on saving account