Question

A customer while investing in to Recurring deposit or Cumulative deposit what are the key factors which will matter

Answer 1

Answer:

The interest amount shall be paid to the Depositor/s on the Maturity date or on completion of the Tenure, whichever is later. Tax is deducted at source on interest on recurring deposit if the interest paid or payable by the Bank for the financial year exceeds the threshold limit specified by Income Tax Act, 1961.