Fixed Deposit Investment: There are very few people who invest their money in the stock market. Investing in the stock market can yield high profits but there is also the fear of losing money. In such a situation, most of the people make FD of their money in the bank to invest their money.
There is no risk in FD. The return received is also fixed. Today we will tell you one such thing about FD through which you can earn more profit by investing in FD.
Fixed Deposit Investment: Profit from FD in wife's name
According to the rules, if you get a return of more than Rs 40 thousand on your FD in a year, then you have to pay TDS of 10 percent, but if your wife is a housewife then you can avoid TDS by making an FD in your wife's name.
Who gets exemption from TDS
People whose total taxable income is less than Rs 2.5 lakh. Those people do not have to pay TDS. If the bank is giving you money as interest on FD, then that money is also counted in your income. Because of this, you have to pay TDS on the interest money of FD also.
Apart from this, if you want to avoid tax on FD interest, you can also open a joint account with your wife. In this you will have to make your wife the first holder.
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