12 September 2013
I am a senior citizen 75 yrs and my wife 65 yrs. I have Fixed Deposits in banks abt ten lakhs and submitting form 15H to avoid TDS.How much total interest earned in a FY does not attract tax deduction What will be the maxiumum amount I can deposit in FD in banks in one FY. Thanks p k srinivasan
12 September 2013
Income of you from all sources in (Financial Year 2012-13)Assessment Year 2013-14 is not taxable up to 2,50,000/-.So would also be case of your wife.It includes income from all sources inclusve interest.Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-10% of the amount by which the total income exceeds Rs. 2,50,000/- would be payable as income tax.Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- Rs. 25,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-would be payable as income tax.Where the total income exceeds Rs. 10,00,000/- Rs. 125,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-would be payable as income tax. You can deposit any amount as Fixed deposit in any Financial year.There is no bar, all depends on your income and savings in any FY.
Every penny of interest earned is TAXABLE if your income from all sources crosses the exemption limit of 2,50,000/=for FY 12-13 AY 13-14.
You can make some exempted investments upto limit of one lac for reducing tax if your income exceeds the exemption limit.
You should have a pan card and a copy thereof should be provided to the banker.
13 September 2013
On an Fix deposit of Rs 10 lacs interest earned may be from 75000/- to 125000( different Banks, different rate of interest). If you submit form 15H No tax would be deducted by the Bank at source. If total income increase 2,50,000 for senior citizen no tax burden.