In a periodic interest payout option, OBC would transfer the interest earned at each interval (say, quarterly) to your bank account. The interest would remain the same across the life of the deposit. On maturity, unless the deposit is renewed, would transfer the principal amount to your bank account.
In case you opt for a OBC cumulative deposit, on maturity you would get a credit for the principal and interest earned net of TDS.
Calculate the FD maturity amount using the FD calculator.
Fixed Deposit calculator OBC – Will TDS be deducted?
In case the interest earned by you across all your fixed deposits across all branches of OBC in a year exceeds 10000, the bank must deduct TDS at 10.3%. In case your IT PAN is not updated in the OBC records, it must deduct twice the TDS at 20.6%. So, do remember to update your PAN on your FD.
Sorry, but we aren’t done with tax yet. This was only the TDS. Now, you would need to add the interest income on all your OBC FD’s and other FD’s to your taxable income for the year. Based upon your tax bracket, income tax is payable on this income. Remember that you must estimate the interest income and all your other incomes and, based on this, pay advance tax on advance tax payment dates (15th Sep, 15th Dec, 15th March and 31st March).
OBC will also issue you a Form 16A giving details of tax deducted on FD interest and tax deposited by it with government treasury. The TDS amount deposited by the bank with Income Tax Department can be verified in your 26AS statement available online on IT department website or through your net banking account. You can claim credit for the TDS amount in your annual Income Tax Return.
OBC FD interest rate calculator – Check your city
Keep your KYC documents - PAN card, address proof and photo ready.
03rd Nov 15 OBC profit up 3.4% on higher credit demand
OBC reported a 3.4 % growth in net profit on an annual basis as a result of a healthy pick-up in the credit demand.
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