FD Scheme: Benefits of getting wife’s name FD, big savings in tax and TDS! – StudyToperC

In today’s time, every person wants to invest his savings in a safe and profitable way. Fixed Deposit is a great option for this. But do you know that you can get many additional benefits by doing FD in the name of your wife? In this article, we will tell you how you can avoid tax and TDS by doing FD in the name of wife and make your savings even more beneficial.

Fixed deposit is an investment option in which you deposit a certain amount for a fixed time and receive regular interest on it. It is a safe and stable return investment medium. But when you FD in your wife’s name, it has many additional benefits that can make your financial plan even stronger.

What is Fixed Deposit?

Fixed deposit is a type of bank account in which you deposit a fixed amount for a fixed period. During this period, you get interest regularly or at a certain rate on maturity. Some of the main features of FD are:

Benefits of FD in wife’s name

1. Tax Savings: By doing FD in the name of wife, you can save tax. If your wife does not work or falls into a low income group, then the interest received from FD in her name will not be less or any tax.
2. Avoiding TDS: If your wife’s total income is less than taxable limit, then TDS will not be deducted on the interest received on her FD. This will give you full interest and will not have to apply separately for TDS refund.
3. Partition of income: By dividing income between husband and wife, you can reduce your family’s total tax liability. This is an effective way of tax planning.
4. Women Empowerment: FD in the name of wife provides financial freedom and can better manage her money.
5. Better interest rates: Some banks provide special FD schemes for women that get higher interest rates. This can give you more returns.

How to save tax?

There are some ways to save tax by doing FD in wife’s name:

1. Partition of income: If your wife has no income or low income, you can reduce the family’s total tax liability by FD in her name.
2. Cut under 80C: By investing in some tax-saving FD schemes, you can avail a cut of up to Rs 1.5 lakh under Section 80C.
3. Use of Form 15G/15h: If your wife’s income is less than taxable limit, they can avoid TDS by depositing Form 15G (age 60) or 15h (age 60).
4. Senior Citizen Scheme: If your wife is 60 years or older, she can get more interest and tax benefits by investing in Senior Citizen Savings Scheme.

How to avoid TDS?

You can take the following measures to avoid TDS (tax deducted at source):

1. Submit Form 15G/15H: If your wife’s total income is less than taxable limit, they can avoid TDS by depositing Form 15G or 15H in the bank.
2. Do small FD: instead of a large FD, do many small FD so that the interest received on each FD is less than Rs 10,000. This will not cut TDS.
3. Choose Non-Completive FD: Interest is paid at regular intervals in non-cumulative FD, which does not accumulate large amount at once and can be avoided by TDS.
4. Link PAN Card: Link your wife’s PAN card to their FD account. This will reduce the rate of TDS from 20% to 10%.

FD in wife’s name

The process of FD in the name of the wife is very easy. You can follow these steps:

1. Open a savings account in the bank in your wife’s name (if not already not).
2. Go to the bank’s website or mobile app or go to the bank branch.
3. Choose the option of opening FD and fill the required information.
4. Choose the option of FD amount, duration and interest payment.
5. Submit your wife’s KYC document (Aadhaar card, PAN card etc.).
6. Fill and submit the form.
7. Pay the amount and get the FD Receipt.

FD types

While doing FD in wife’s name, you can choose from different types of FD:

1. Regular FD: The most common type of FD in which money is deposited for a certain period.
2. Tax Saving FD: By investing in this FD, you can get tax exemption under Section 80C.
3. Flexi FD: You can withdraw money according to your need.
4. Commonological FD: It reinstates interest, which gives compound interest.
5. Non-Completive FD: In this, interest is paid at regular intervals.

Fautable things when investing in FD

1. Compare interest rates: Compare FD rates of different banks and choose the best rate.
2. Selection of duration: Choose the correct FD period according to your needs. Long -term FD usually gets more interest.
3. Interest payment option: Choose the option of interest payment (monthly, quarterly, annual) as per your requirement.
4. Nomination: While opening FD, please give the name of the nominee. This will easily get money in your absence.
5. Auto-Renuel: If you want FD maturity automatically renew, then choose an auto-renewal option.

Disclaimer

This article is only for informative purposes. Although we have tried to provide accurate and updated information, the financial rules and laws can change from time to time. Please consult a qualified financial advisor or tax specialist before taking any financial decision. Writers or publishers are not responsible for any loss or loss caused by the use of this information. Make a decision according to your personal financial goals and circumstances.