What happens if we withdraw Fixed Deposit from one bank and invest the same in another bank? May be for better rate of interest or for nearness or for bad service etc.? Actually, it is a case of renewal but the new Bank do not know the same. For them, it is the new Fixed Deposit only. This can create problems to the people. more  

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Irrespective ofthe amount of FDs you invest, interest from savings bank accounts is exempt to the extent of Rs 10,000/- more  
whether you put fd in bank & cancel that & put in other bank, but total interest earned is important, because you are giving pan card to all banks. more  
08-01-2016 Bangalore To Sri M M Ali Khan Note that interest earned from fixed deposits forms part of your total income. That is whatever be your income from fixed deposits, it will be part of your total income. Hence to claim exemption of Rs.1.50 lakhs (latest ceiling) (chapter VI A) you have to do lie this:- 1) Invest a sum of Rs.1.50 lakhs from your currebt income in any fixed deposit or any other specified investments. This applies to renewal of fixed deposits also. 2) Period of investment : 60 months for income tax purpose. 3)After investment or renewal, deduct Rs.1.50 lakhs from total income. This is irrespective of various components of your income. Note: There are 4 components of income. Note: Deduction from total income; not from a component of income. With regards, - Nagaraj T V more  
All interests fro FDs are "income from other sourcs". They have to be added to the Total income. Investments under 80 C up to Rs 1.5 lacs is exempt. The limit of taxable income for super senior citizens start above Rs. 5 lacs more  
Please advise as to what is the yearly (income tax) exemption limit for interest on Fixed Deposit in a bank. Is there a higher limit for Senior citizens (Above 60 or 70 years). more  
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