Will I need to pay tax on interest from i-wish

[samkapoor77]

I am thinking of investing Rs. 4, 00,000 in I-wish account rather than keeping it in savings account. I-wish gives 9% interest for 13 months. Even if I prematurely withdraw it and pay 0.5% penalty, I will still gain more than a savings account. I want to know whether this interest will be deducted by bank or will I need to quote in ITR on my own.

[samkapoor77]

Since I-wish is a type of RD, therefore like other RD accounts bank will not deduct tax on it. It will be your responsibility to show the amount of interest in your ITR.

[Rajeev]

What will the tax on fd interest

[Sandeep]

The tax on fixed deposit will be as per your individual tax slab. which means if you are in 30% tax bracket as per income, the interest will also be charged at same rate.

[Author]

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