Tds deductions for senior citizens

This query is : Resolved 
 

(Querist)
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

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ajay sethi (Expert)
Click to Talk
12 September 2013

your CA will guide you in this regard .

R.K Nanda (Expert)
Click to Talk
12 September 2013

contact tax lawyer.

prabhakar singh (Expert)
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.

Rajendra K Goyal (Expert)
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.

p k srinivasan (Querist)
14 September 2013

Thanks for your reply and guidance on
FD Interest earned by seniors.

p k srinivasan

R.V.RAO (Expert)
21 February 2014

FORM 15H submission in every year april will exempt you from tax deduction at source.

if the annual Bank F.D interest crosses Rs 250000/, the bank software is programmed to automatically deduct TDS.@10%.

so take it that Rs 25 lacs F.D gets you annual int.of Rs2.5 lakhs p.a.(assumed int.@10%)
for senior citizens savings /deposits, remember that either nomination/joint account is a must .

R.V.RAO (Expert)
21 February 2014

FORM 15H submission in every year april will exempt you from tax deduction at source.

if the annual Bank F.D interest crosses Rs 250000/, the bank software is programmed to automatically deduct TDS.@10%.

so take it that Rs 25 lacs F.D gets you annual int.of Rs2.5 lakhs p.a.




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