Secret Way To Save Tax !
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- Опубликовано: 3 окт 2024
- 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
![OsamaSon - ik what you did last summer [Official Music Video]](http://i.ytimg.com/vi/4DIQDnu3mr4/mqdefault.jpg)
PAN card and aadhar card linked bank account have gone for evening walk
First point that came to my mind lol😂
40,000 is limit for each bank. But if you come under tax slab then you have to pay tax. No exemption for you on FD.
@@arpitkumar4525 40k per month int knw ?
@@gat6932 40K interest income in a year
These financial influencers are giving half baked info... Making bakra of viewers... Try doing it in real life
This fellow is going to get a nice surprise when he files his IT return at the end of year
Just like i got last year 😃
Bro can you explain? I have no idea about this
As per RBI guidelines, Bank can only deduct TDS if your interest amount per year is more than 40k. So even if your interest amount is less than 40k you can’t have it as tax free income. You ideally have to update that as income while filing ITR and any income will be taxed as per you tax bracket for that FY.
So by this technique in video, you can delay the tax payment not save it.
Yes
@@ANKITSINGH-sv6yxfurther it may attract interest on late paying taxes😂😂
How about 26AS, it captures everything.
Banks may not deduct tds but you have to pay tax for sure 😊
Yes
But if a person doesn't come under tax slab then it won't
Pavan Kumar Bhai yeh sab kaha se pata chalta hai?
In this country the tax slab for everything is soo soo high that everyone loses money if he buys or sells anything.
Along with interest!
mummy , sister, brother, grandparents- put some money on everyones bank account as fd
Better idea than this video
Form 15g/h and ITR-tds claim left the chat.
15 g can be filed only if the total interest income subject for the year is less than the basic exemption limit of that year, which is Rs.2.5 lakh.
@@prabalsrivastava88625 lakhs
@@prabalsrivastava8862 correction if the total income from all the sources is less than 2.5 lakh ...that's there in the declaration ..bank files your interest data which gets reflected in 26 as and you have to pay tax including interest ..( if you have paid advance tax or enough tds gets deducted you can avoid paying interest) ..read your it returns completely you will understand .
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.
Section 234C of income tax has left the chat
You are yourself not clear. Please read Section 234b and 234c of the IT Act. This is a useless hack, it's better for you if bank deducts TDS, rather than you paying hefty interest on not giving the advance tax on time to govt 😅 And if you fall in 30% tax bracket, it is recommended you should pay those remaining 20% yourself on interest income quarterly on time. And if someone just have interest income as his only income, he can just give Form 15G to bank for not deducting the TDS at all, rather than trying these useless hacks. I hope your confusion got cleared.
😂😂😂@@sunilseervi9039
Correct
@@sunilseervi9039dude you don't get the point.
0% Logic, 100% Fun, -100% Loss, 0% Profit
😂
Negative 100% loss means 100% profit 😂😂
Waste of 30 sec of my life.
Beside financial advices, your videos (comedy) also makes people smile and boost their mood!!
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.
But still the interest will feature in your AIS ( Annual information statement) you anyway have to pay tax depending on your tax slab
Absolutely right.
That's right. I think Sharan may need to correct his video
Now this trick doesnot work. All information whether tds deducted or not will be available in 26AS. While filling ITR, 20% or 30% will be charged.
-Officer at ITD since 2015.
@@AKAK-zb6yg 👌🙏
It is a TDS saving trick not Tax saving trick
Me who understands nothing but still enjoys: *I like your funny words magic man*
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
In that case 6 lac in your name.. 6 lakh in wife/parents /child something like that might help
@@sanketnegi1 yes that's correct
@@sanketnegi1 give your DIY craft ideas somewhere else. Not a place for half knowledge, might, may
@@nikhil2376 alright then go study the income tax act and tell us fool proof ideas
@@nikhil2376 dear triggered insaan..might, may is used because I do not know about the other person's exact situation..
If he does that and his wife already has FD.. it will not help..
You don't need to be an ass.
Le Pan card : am I a joke to you ? 😂
TDS: Tax deduction at Source. If interest exceedes 40k for one bank, bank will deduct TDS from its end. but still would be taxable according to the tax slab you fall in. So no, pan card is not a joke. And neither is your comment.
@@mridulsharma4847well explained
make fd from 2 account simple bro
@@mridulsharma4847amount of people oblovious to what TDS means is really annoying.
This tip is to reduce the TDS, not to evade taxes. Based on the returns, one would still pay income tax on interest but TDS may deduct excessively. That is what this video addresses.
All the kids criticising Sharan missed the point. Sure he makes some.misleading stuff sometimes but he is 100% right on this one.
@@senor2930 you can get a tax refund if your total income is low
I think “Poppa” is going to lose some money if he didn’t subscribe to your channel 😂😂
Ddrfffg
Xccghjiifsrtg
Or file 15g/15h to avoid paying tds till 250000/- interest income.
Whats that
@@mygreenparadise431 its a form which can be filed in your respective bank where your FDs are created in month of April
Tds is not something you pay, it is deducted before getting to your hand.
I think he only meant bank deducting TDS on interest can be avoided. Ultimately amount beyond 40k would be taxable while filling ITR, a lot is possible while filing ITR. We can avoid or pay at that time
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.
We got the point, but you missed it, TDS makes life easy, it pays a part of the quarterly income tax, any delay in payment and there will be steep penalties including the supposed TDS which wasn't deducted. Saving compounding interest of a paltry SB deposit on 3 months over 1/3rd the total deposit is insignificant.
Neha ji your knowledge is incomplete. TDS means you don’t have to pay advance tax up to that extent. If you don’t have any tds deposited using this trick you will have to pay interest on deferment of tax under section 234A and B
@@harshavardhansonawane8076you can still pay your tax quarterly. Just requires calculation on your part. It doesn't make sense if it's giving you low amounts (like less than 1LPA) because it's too much headache, but if numbers are high the effect can be significant
@@hbrg9173 as a practising chartered accountant, I can tell you that practically no one remembers to do this or the client ends up spending the money In the bank account and doesn’t have any to pay the advance tax. In fact, forget quarterly, client sometimes doesn’t even have money to pay self assessment tax also and has to often borrow money to pay the final income tax. This is very unlikely where the client will pay quarterly tax instead of tds.
While filing ITR person needs to update interest earned from FD and on saving account
ruclips.net/user/shortsQFwYhfpWBas?feature=share
hea man its a old concept.. I can add one more point to it. put your money with all Nationalised banks like 5 to 7 lakh fd . and this makes you get insurance of 5 lakh even the bank becomes bankrupt. your money transferred to your account within 90 days.
I want more strategic investments bro.. cause you are rock on that.
Now AIS is so smart. It will add all interest and it will be available there while filling Assessment.
You can file 15G/H with banks to tell them not to deduct TDS if your Income is below taxable limit.
TDS deducted can be claimed while filing ITR to discharge your tax liability and if there is no tax liability, that amount will be refunded with 1/2 percent interest on refund amount.
All these interest income from various banks are tracked to added to your total income. Thats why your PAN is collected in all banks. It will reflect when you are filling your tax return.
My man Sharan pl educate us on how you study this vast finance sector (I'm a tech guy so Insurance, Savings, Banking ops, Stocks etc. is like Amazon jungle for me), how you filter various topics, what criteria you use, how you choose your concept & how you come up with a simple story to explain it.
yeah good question, I'm a healthcare person, and even we don't have knowledge about finance sector. so it will be helpful if someone educate about this
@@devaraj688 ruclips.net/user/shortsQFwYhfpWBas?feature=share
This is a way to avoid TDS(tax deduction at source), not the tax itself.
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
If the second person is dependent on you. You have to pay tax on combined income. Unless second person has their own professional job. So even 2 persons is illegal. This called clubbing of income.
TDS cuts excessively
That is why this tip is useful
Calculate & pay.
But anyway it doesn't matter because you'll get the refund if you have overpaid.
Congratulations sir finally your 🛣️ IIMB dream is achieved.
You have to pay tax one way or another. If your TDS gets deducted you can offset that amount from total income taxation. You have to pay taxes anyway. So it doesn’t matter if you pay it upfront as TDS or later as income tax.
Just imagine a person working in TCS with 3LPA watching this and planning his tax
You can file form 15g/15h with the bank and they won't withhold TDS
Adhar linked with every bank and a pan can catch you, it was happening before when their is no adhar, people used to split the amount in different bank.
He is smart. He dint say one wud not have to pay tax on the interest amount. He just said TDS wont be deducted by bank.
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.
Then you pay it or not
Pros.. TDS not deducted compounding done
Cons-
1. income to be shown after have to pay extra interest on the income tax amount.
2. Chances to get demand notice if not declared.
3. Extra work extra money to ca or tax professional.
Perfect. I faced this issue some years ago.. by just listening to half baked youtube video like this..
One can submit form 15g/h to avoid it. Although it is only recommended when you dont have any tax liability for the financial year.
TDS is not deducted by bank but the income tax department and Income Tax department knows how much money you have in your different bank accounts and how much interest they're paying.
kal hi class me padha ye.
but your way 🔥🔥🔥
Kya kr rhe ho aap studies me abhi ?
@@FinCup_ CA
@@FinCup_ i saw your channel.
Carry on bro. Good content 😊
@@msc4221Bhai tu CA he na please mujhe bata mere FD pe yearly 40000 se upar interest ata he Mera 10 percent TDS ho rha he. 15G and 15H Form bhi bhara to bhi deduct ho Raha he.Refunf nahi mil raha.Ek Form he ITR karke usse refund milega ya fir kya karna hoga please Bata?
Mr Finance with Sharan..that interest amount will reflect in your form 26 As and you will finally have to pay the tax..
and in case your tds has been deducted and your income is less you can claim that as well during your itr filing
that's no hack..
It doesn't matter at all
Everything comes under 26AS Traces site first, and now in newly introduced AIS report
Even if tax does TDS you can claim it while filling return. But if you come under tax slabs theb you have to pay tax anyway as per tax bracket.
old method all bank accounts are connected under PAN for IT. What he is saying is keep it in other bank with amounts being less than 5L so it does not reflect "untill you tell"
But if you are in taxable bracket, you still have to pay tax for the total interest earned.
This thing could only help you gain more interest because of compounding effect and delaying payment of tax instead of tax saving
Nimmoun…. 😂 Namma Bengaluru uduga 🤣👍
Uduga padada artha enu?
Kannada baralla avnige anta artha... Huduga adu @@ravikumar-sharma-k
😅avanige kannada barallaa thulu aste
It's better to put it in post office bonds 7.5percent return per annum.
Misleading, you however need to pay tax at higher rates than 10% if your income is more than 5 lakhs, and if it is less than 5 lakhs u will get a refund.
Don't think IT is dumb, all of your accounts are linked via PAN and aadhar. Doesn't matter in how many banks you put your FDs. The amount will get deduct during ITR.
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?
@@nseniftybankniftytrader4086 how? We have to pay tax it shows in ITR
@@nseniftybankniftytrader4086 it is a wrong practice I guess...
@@nseniftybankniftytrader4086 For claiming the HRA, exemption amount will be calculated by 3 formulas. Among those 3, Which ever shows is less, only that much amount will have exemption. No one is claiming 50k HRA for 1 Lac salary.
@@nseniftybankniftytrader4086 my hra is around 25% of inhand salary
if you dont file itr then you dont need to pay. most people dont file itr
Meanwhile me searching for lotak in my area 🤣
Kotak
However if tds is not deducted you will have to pay tax under the head "income from other sources" for the interest amount received subject to certain deduction under chapter VI-A of income tax act 1961(even though you split and deposit)
When tds is deducted by the banker under section 194A of in come tax act 1961 (10%) in case when interest exceeds ₹40000 such tds amount can be adjusted against your tax liability.
So in both cases your net tax liability remains the same..
Even if have received 10k in FD, it's still accounted as income in Form26 for salaried employees
Multiple FD in single account ❌
Multiple FD in multiple accounts ✔️
Le nim mauwan, saving TDS does not help you to save tax. You have to pay tax per your income .
But yes, TDS deduction will indeed reduce your interest earning i.e., compounding
Bro!! I don't expect partial information from ur channel. please provide full information, as partial information may be misleading for some..
He’s misleading us. 40000 is aggregate of all interest received and not specific bank. I’m a CA student and this is written in Income Tax Act
Hey, you guys are missing the point. He is talking about TDS deduction. Regardless, you still need to pay income tax. However, if you fall within a tax slab where you don't owe any tax, you don't have to wait for a TDS refund. Instead, you can use the 10% TDS amount for compounding. For example, if you earn ₹3,99,990 in interest from one bank, your TDS will be ₹39,999. But if you split this into 10 different banks and earn ₹39,999 from each, no TDS will be deducted, and you'll receive the full amount. Additionally, if you have no other income and fall under the no tax payable slab, you can invest the ₹39,999 (which would otherwise be subject to TDS) and benefit from more growth than if TDS had been deducted.
Yes it works if you have low income and you don’t file it return
Incase income exceeds 40k then if the fd matures in any previous quarter, and if tax is not paid, then while filing itr there will be interest and fine to be paid
Because of RBI rules for Total Sum of Deposits Insured with any 1 Financial Institution.. we can anyways restrict ourselves to have deposits only up till ₹5 lakhs with any one bank.
Or you could simply fill the 15G/H form
I believe this is ok for non taxable income - they can fill 15G/H form to remedy this anyway.
but for people with taxable income will have to pay tax anyway
Bro Sharan doesn’t know about AIS (Annual information sheet) where interest from all FDs, saving account gets pulled up. This old technique to divide fd among banks does not work.. 😂😂😂
'Nimmoun' always cracks it up😅
as per the income tax act if one's Taxable income for the quarter is more than the exempted limited the one has file the advance tax every quarter or else while filing the ITR for the year end one has to pay the tax along with the interest levied by Income tax Department
Irrespective of how many bank accounts you have.. You have to pay the tax on total interest income..if not initially then at the filing..
Sharan advising how to get income tax notices. Dude this worked 2 years ago now AIS of income tax cover across all banks, demat and even post office investments
At the end while filing IT return it will automatically show how much total interest income was
😂😂This idea i used 4 years back and still paying Taxes
Le nimmavan.. Nice dialogue of yours.
PAN Remains same in both bank.
I heard a similar hack last year and redistributed my FDs across three different banks. I had to pay tax on fd income while filing ITR.
Even if TDS is not deducted income is taxable. Hence it is better TDS is deducted.
Bank responsibility of deducting ceases,but individual has to pay TDS in interest
Bro considering this if a person is not having taxable income and hence not have to pay income tax while filing IT return your logic holds good to deposit the money so as to not increase interest to more than 40k from one bank. But then if that's the situation he/she will rather file form 15G/H and not to have any TDS deducted at all.
To avoid tax to some extent fill form-15G upto 60 years and form 15H for senior citizens every year in the bank, typically start of a financial year..
If TDS is not deducted then anyway you will end up paying manual tax challan next year along with intrest on delayed tax amount
Have you heard about AIS statement?
You cannot run from it, even capital gains are also visible on AIS
Explained perfectly.
Thanks bro I wanted this information 🙏
where ever you deposited the money the PAN & AADHAAR CARD linked to the Bank account, when individuals file the IT he has to declare all incomes, Even if TDS AVOID at overall has to pay Income Tax.
Rather we can calculate after how many days the interest will become 40k. Just make the maturity date before that. And and after maturity fix again.
but you eventually have to pay the remaining tax in the final ITR filing time right.. over the total interest earned by you across all banks .. right ?
Even i was thinking the same. What a joke
Yes but 6 lakhs in your name and other 6 lakhs in relative's same
Hi dude
Don't ever think on this way
He is covering in single shots or else he could have made you shock on this extreme strategies
Even you keep the amount in 10 different accounts aggregate interest exceed 40000 then tds will be deducted irrespective if you deposit different accounts
It’s just deferring the tax.Eventually tax have to paid while filing returns..
You have to pay tax on interest on FD anyway bank only deduct 10% TDS but you may have to pay more as per your income tax slab because interest on FD is consider as income. Even if you divide different banks you cannot avoid it.
This idea will avoid TDS from the bank, but later we can manage ITR filing..
You may avoid TDS deduction upfront this way, but you will have to pay tax ultimately.
You can deposit all amount in the same bank and fill form 15G/H if interest is less than 40,000, bank will not deduct TDS
But when tax calculation is done if it is 20% or 30% bracket then you have to pay it you can't ignore it. Either pay now or later.
Nimmoun 🤣🤣🤣
Bro please make a complete video on depositing amount and how to get interest rate monthly without taxes
And then meet Sharan when total interest earned will be taxed as per tax bracket.😂😂
you are doing awesome work
Bank employ: the remaining 30k T . D . S will ur papa pay
Me: 😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂
That bribe was smooth 😂😂
Very useful... Happy to hear Tamil
Missing that "Kya fuk ke aaya hai be"
Iss baar sachmein fuk ke aaya hai ye
This is completely wrong spreading wrong information to public . Interest income is not calculated only on interest generated from a single bank. Interest income from which ever bank you have deposits all are included for deducting TDS.
Invest in ultra short debt mutual fund, you can save lo more tax. Because you don't need to withdraw entire money
Thanks for your comment, 👆👆What’sap me with the number showing above for more profitable investment plan.
Not possible now. While filling tax everything comes up as it is linked to pan card
Refund can be claimed during filing of income tax returns
Fill up form 15G/H, then the bank would not deduct any TDS
It's calculated pro rata basis not when interest income is credited