FD Interest Tax

Calls Grow to Address Tax Anomaly on Bank Fixed Deposit Interest

A recent report by Deccan Herald highlights ongoing discussions about rectifying a long-standing tax anomaly concerning interest earned on bank Fixed Deposits (FDs). The anomaly refers to how FD interest is taxed at an investor's slab rate, often leading to a situation where real returns after inflation and taxes can be negative, particularly for middle-income and senior citizen savers.