Is GST charged on bank interest?
What is the rate of GST for banks and other financial institutions? Banks and financial institutions are charged a rate of 18\%. This is a 3\% increase from the earlier service tax rate of 15\%.
Is Bank FD interest taxable?
Interest income from Fixed Deposits is fully taxable. Add it to your total income and get taxed at slab rates applicable to your total income. It is to be reported under the head ‘Income from Other Sources’ in your Income Tax Return. So, if you have an FD for 3 years – banks shall deduct TDS at the end of each year.
Is FD a good tax saving option?
Besides FD, there are many other tax-saving investment options that help you build your wealth, such as ELSS tax-saving mutual funds, PPF, and NSC. Fixed deposits are deemed as one of the safest savings options out there that offers capital protection and growth without falling victim to market highs and lows.
What is interest rate on FD?
Calculate Fixed Deposit Interest Rates
| Top Banks | FD Interest Rates | Tenure Period |
|---|---|---|
| Punjab National Bank | 2.9\% – 5.25\% | 7 Days – 10 Years |
| City Union Bank | 3\% – 5.25\% | 7 Days – 10 Years |
| Bank of India | 2.85\% – 5.05\% | 7 Days – 10 Years |
| Canara Bank | 2.9\% – 5.35\% | 7 Days – 10 Years |
What are fdfds under GST?
FDs or saving deposits or any other deposits in a bank or financial institution for which return is received by way of interest. Entry number 27A inserted to allow GST exemption for services provided by a banking company to basic saving bank deposit account holders under pradhan mantri jan dhan yojana (PMJDY).
Is GST applicable to the banking industry?
The banking industry is covered by the erstwhile service tax law and same was levied on the service provided by the banking sector to its customers until the introduction of Goods & Service Tax Act. In this article we would like to explain the important GST provisions relating to the major services offered by the banking industry to its customers.
What are the exemptions from GST for services?
As per entry number 27 of the notification 12/2017, exemption from GST is allowed to services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services). The term interest has been defined in the notification 12/2017.
Is bank interest exempt from gstr 1?
16 December 2017 Yes,Vishakha ma’am that is the issue that is can be said as service supplied to Bank (i.e Money) and in consideration we have recd. Interest so it should be shown in exempt supply in GSTR 1 and GSTR 3B also. 16 December 2017 There is no sales or service involved in Bank Interest.