Our confusing tax code

........Many assume paying income tax is the same as Tax Deduction at Source (TDS), says certified financial planner Suresh Sadagopan. "This is because banks do not deduct tax at source if your interest income from fixed deposits is up to or more than Rs 10,000," he says. Therefore, many make small deposit accounts across more than one bank and save on TDS. Instead of one Rs 5-lakh deposit, many make five Rs 1-lakh deposit accounts. Yet, there is an incidence of income tax liability under the head of income from other sources when you take into account all the interest incomes together. When investors put money in tax-saving bank deposits, that have a lock-in of five years, they assume the interest earned on these deposits is also tax-exempt. This is untrue............

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