Sambaji Deshmukh 03 November 2023

Tds limit on fd for senior citizen

Sir

My name is Sambaji and I am 65 yrs old. I received an amount of Rs. 653,000 from sale of my car.

I want to make a FD in HDFC bank which will give me a interest rate of 7.55% PA

Now I calculated that my total interest will be Rs 49,301.5 I am confused as the HDFC Bank says that I will be charged TDS on amount of Rs 40,000 even though I told him I am a senior citizen.

Is there any change in TDS law to this effect.

Please clarify

Sambaji Deshmukh

Thane

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1 Replies

bhagwat patil (Property due diligence 9422773303) 20 November 2023

Section 206C(1F) of the Income Tax Act requires a seller of a motor vehicle to collect tax at source from the buyer at the rate of 1% if the value of the motor vehicle exceeds INR 10 lakhs. The tax shall be collected at the time of receipt of such sum from the buyer.

First of all your transaction is below 10 lacs. In your IT returns there will be depreciating value of car if is same as your sale value no tax is attracted.