Tax deduction on fd
Rupesh
(Querist) 28 March 2014
This query is : Resolved
Hi,
My mother is housewife and having Fixed Deposit of Rs 10,000,00 in bank; interest rate is 9% p.a.
Pls let me know how much income tax she has to pay on this FD interest and how to avoid this tax?
R.V.RAO
(Expert) 28 March 2014
TDS@10% will be deducted by banks, on annual interest if it exceeds Rs 10000 P.A.
in your mother case,she gets int. of Rs 90000 P.A. so bank deducts Rs 9000 TDS.
but the depositor can submit form 15G /H TO avoid TDS.
ajay sethi
(Expert) 28 March 2014
agree with Mr rao
R.V.RAO
(Expert) 29 March 2014
Thanks. sri Ajay sethi ji.
malipeddi jaggarao
(Expert) 29 March 2014
If your mother is not having taxable income except the income from the bank's FDR and not filing tax returns, she has to submit the Form 15H/G asking the bank not to deduct tax at source. If she is filing returns, after computing the income and tax liability she can adjust this TDS and ask for refund if the tax liability is lesser than the TDS.
prabhakar singh
(Expert) 29 March 2014
You told your mother a housewife and she might be a senior citizen too and might be having no income other than this interest of 90k.Hence she has no taxable income and filing 15G/H,as rightly advised by experts can do away your mother's trouble and inconvenience in this regard.
Guest
(Expert) 29 March 2014
Precisely advised by senior expert
Rupesh
(Querist) 29 March 2014
thankyou all for your expert advice...
Rajendra K Goyal
(Expert) 29 March 2014
Well advised by the experts, agree to it.
R.V.RAO
(Expert) 30 March 2014
agree with experts. and wish to BRING to the notice of all senior citizens in this forum and elsewhere, about the NOT SO recent amendment ( in column 22 of part 1 OF form 15 H).
IN THIS COLUMN, the depositor who is senior citizen is required to indicate about his estimated total income of the previous year in which income mentioned in column 21 is to be included.this was not there earlier.
column 21 refers to est.income from dividends,interest on sums(invested for interest)income from mutual funds,withdrawals from nss etc...
col. 21 refers to sums on which depositor sought no TDS to be deducted.
T. Kalaiselvan, Advocate
(Expert) 29 March 2014
