❌ “Fixed Deposit (FD) Taxes Are Fully Deducted by the Bank”

Reality: Banks deduct only 5% as withholding tax on interest income, which is far below many taxpayers' marginal tax rates (e.g., 36%).

If your tax rate is higher than 5%, you must pay the difference.

Example: If your marginal rate is 36%, you owe an additional 31% on your interest income as taxes.

Note: According to our sources, the IRD has already collected WHT deduction information for your FDs and other deposits from most banks and financial institutions. Some of these accounts have already been linked to your RAMIS profile (you may have noticed this when filing your returns). If the IRD initiates enforcement actions against tax avoidance, this could be where they start. Therefore, ensure these are included in your returns.