Neutral impactEconomy
Think your salary TDS covers everything? How a ₹15-lakh FD can trigger advance tax penalties on September 15
Mint 2 hrs ago·6 Sept 2026, 3:19 am
Investors holding fixed deposits (FDs) worth over ₹40 lakh as of June 30 must pay advance tax by September 15. This quarterly deadline is often overlooked by salaried individuals who believe their regular TDS deductions are sufficient. However, TDS is calculated on the bank's interest rate, which can be lower than your actual income tax slab. This discrepancy can lead to a tax liability that exceeds your TDS, resulting in a penalty for non-payment.
For the retail investor, this means you could face a surprise demand from the tax department. It is crucial to review your FD investments and estimate your total tax liability. If the advance tax payment is short, you must pay the shortfall by the deadline to avoid interest charges. Keeping track of these obligations ensures you remain compliant with tax regulations.
Key takeaways
- Category: Economy.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.
