Fixed Deposit Interest Rates and Tax Deduction Rules for Spouse Accounts in India
Fixed deposit interest rates in India vary widely, with small finance banks like Suryoday and Utkarsh offering rates up to 8.10%, higher than many public and private sector banks. Senior citizens often receive enhanced rates on tax-saving deposits. Regarding tax rules, interest earned on a spouse's fixed deposit is subject to clubbing provisions, meaning the spouse cannot claim tax credit or submit Form 121 to avoid TDS. Any TDS deducted can be claimed by the actual owner while filing returns.