Tds on interest income of deceased account
R. K. SARASWAT
(Querist) 13 March 2012
This query is : Resolved
My father was having Fixed Deposits in Bank. He died. After his death the Maturity Amount (Principal + Interest) is being paid to me as per Nomination. Now Bank is deducting TDS on Interest. My quarry is:-
1. Can Bank Deduct TDS on Interest earned and being paid to me?
2. If TDS is deducted than TDS Certificate should be in whose name i.e. my father or me?
3. My Gross Income including from my all sources Plus Interest Income from Father’s Fixed Deposits will be below the Taxable limit. In the circumstances can I submit Form 15G for not deducting TDS on Interest Income? If not then--
4. Can I submit 15G on behalf of my deceased father for non TDS?
A V Vishal
(Expert) 13 March 2012
1. Can Bank Deduct TDS on Interest earned and being paid to me?
Ans. Yes
2. If TDS is deducted than TDS Certificate should be in whose name i.e. my father or me?
Ans. It may be given in either name, you can claim the TDS as LR.
3. My Gross Income including from my all sources Plus Interest Income from Father’s Fixed Deposits will be below the Taxable limit. In the circumstances can I submit Form 15G for not deducting TDS on Interest Income? If not then--
4. Can I submit 15G on behalf of my deceased father for non TDS?
Ans, When are the deposits maturing since the bank must have deducted tax for previous quarters and paid it giving a 15g/h at this point of time will definitely be of no use.
C. P. CHUGH
(Expert) 20 March 2012
Dear RK,
Banks do not normally pay deposit interest on deposits held by a deceased. Only interest as per SB account is paid. Please check whether the bank is paying interet or not. If your querry related to TDS deducted on intrest earned while your father was alive, you can claim refund by filling return of income of deceased as legal heir.
Sure and short for you is that immediately on first matured get the proceeds credited to your father account, now under your operation. Transfer it to your individual account and open a fresh fixed deposit and submit form 15G/H whihever is applicable.
R.V.RAO
(Expert) 22 February 2014
as representative assessee you may file a return for refunding TDS deducted by bank against your late father's F.D.
but then you need to submit,death cert.legal heir cert.NOC from other legal heirs if any.
ITdept.may not ask for succession cert.
refund cheque also to be asked in your name.
