Take This Quiz & Predict Your Score in the coming CA CS or CMA Exam!
  • How important it is for you to pass the exam in this attempt?
  • What percentage of course you have finished well so far roughly?
  • How many hours you study in a day?
  • How many times you have revised the topics you have finished
  • Have you taken online or pen drive or live class from a renowned faculty?
  • What percentage of the classes you have watched?
  • Have you attempted mock tests or practice tests yet?
  • Are you planning to attempt mock tests conducted by external bodies- ICAI, ICSI, ICMAI or other institute?
  • How many tests you have taken?
  • Did you manage to finish the test papers on time?
  • Are you strictly following study material provided by the exam conducting authority such as ICAI/ICSI/ICMAI/Other Body?
  • How is your health in general?
  • How is your food habit?
  • Any interest in yoga or exercise or play sports regularly?
  • Planning to sleep well nights before the exams?
  • Planning to have light food and water before exams?

Tax comparison on interest of RD FD and SA

Tax comparison on interest of RD FD and SA


ParticularsTax on Interest on
Fixed Deposit
Tax on Interest on
Recurring Deposit
Tax on Interest on
Savings Account
Applicability of TDSTDS @ 10% of InterestTDS @ 10% of InterestNo TDS
Income Tax Deduction allowedFull Interest TaxableFull Interest TaxableRs 10000 deduction
Income Tax on InterestAs per Slab RatesAs per Slab RatesAs per Slab Rates

Tax comparison on interest of RD FD and SA,check out now!

TDS on Recurring Deposits would be deducted @10% of the Interest earned. Earlier, TDS was not deducted on Recurring Deposits but with effect from 1st June 2015 – TDS on Recurring Deposits would be deducted @ 10% under Section 194A

Budget 2015 has introduced an amendment to Section 194A and now the meaning of the word Term Deposits includes Recurring Deposits and therefore TDS @ 10% would be applicable on Recurring Deposits. However, No TDS would be deducted on Interest earned upto Rs. 10,000 to safeguard the interests of the small depositors.

As a result of this amendment, the TDS on Interest earned on Recurring Deposits would now be the same as the TDS on Interest earned on Fixed Deposits.

Income Tax on such interest on Recurring Deposit would be levied as per the Income Tax Slab Rates of the person receiving the interest. The current income tax slab rates can be divided into the Nil category, 10% category, 20% category & the 30% category.

This income would also be required to be disclosed every year in the income tax return which is required to be filed before 31st July/ 30th Sept of the next financial year.

The person receiving the Interest on RD cannot claim any deduction on the same and tax would be levied on the full interest amount as compared to Interest on Savings Account on which a deduction of Rs. 10,000 is allowed.

Savings Account yield the lowest interest as compared to Recurring Deposits and Fixed Deposits and therefore an individual should not prefer to keep much amount in savings account as the interest earned is fairly low. A person should transfer money from Savings Account to Fixed Deposit if he has funds for a lump-sum investment or else transfer funds to Recurring Deposit if he can save a defined sum after every period.

Many financial planners have started advising their clients to place their surplus lump-sum funds in Fixed Deposits and also to start Recurring Deposit and Mutual Fund SIP’s in which deposit is required to be made every month as it inculcates the habit of saving every month.

Tax comparison on interest of RD FD and SA,check out now!

For more details please visit

cakartAt CAKART ( you will get everything that you need to be successful in your CA CS CMA exam – India’s best faculty video classes (online or in pen drive), most popular books of best authors (ebooks, hard copies), best scanners and all exam related information and notifications. Visit www.cakart.inand chat with our counsellors any time. We are happy to help you make successful in your exams.


  1. Anushi Aggarwal says:

    what others amendments are made under budget 2015 ? please give a brief reply.

Leave a comment

Your email address will not be published. Required fields are marked *