Fixed Deposit: We all do various types of financial planning for the New Year. Some buy a house and some a car on New Year. Some go on a trip with their family and some start investing. If you are also going to start investing in the new year, then we have brought a great tip for you. Generally it is seen that people get FD made in the name of their wife. If you make an FD in the name of your mother instead of your wife, you can get many other benefits along with huge interest. Let us know.
You will get more interest on making FD in mother’s name
If you make an FD in your wife’s name then you can definitely save tax. But always keep in mind that if you make an FD in your wife’s name, you will get the same interest as you get. On the other hand, if your mother’s age is 60 years or more, then you will get 0.50 percent more interest on the FD made in your mother’s name. Not only this, if your mother’s age is 80 or more then you will get 0.75 to 0.80 percent more interest.
Relaxation in TDS limit also
Apart from this, TDS is deducted on the income from FD. According to the rules, if the interest received from FD exceeds Rs 40,000 in a financial year, then you will have to pay TDS of 10%. Whereas for senior citizens this limit is Rs 50,000. That is, getting FD in mother’s name will be beneficial here also. Not only this, if you make an FD in your mother’s name, you can also save on your tax.
Your tax liability will also reduce
Actually, the earnings from FD are added to your total earnings. In such a situation you will have to pay more tax. Very few people consider that if they make an FD in their mother’s name, they will not only get more interest but can also save a lot of tax. Generally, most women in ordinary families either fall in the lower tax bracket or are housewives. Housewives who have no income do not have to pay any tax.
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