How to avoid TDS on Fixed Deposit?
- 124 Comment
Introduction
When you open a fixed deposit account in the bank, the interest paid for the deposit will be taxable income and the banker will deduct the tax at source and pay you the remaining income to your account. This process is called as Tax Deduction at Source(TDS).The intention of this article is not to avoid the TDS on Fixed Deposit income all the times. But, there is cases where the TDS is not applicable but still the banks may cut the income from the source. It can be avoided if you act wisely and submit the required forms. This article intend to explore that in detail. If you have any doubts please post it in the comments section. You can subscribe to our future articles here.
TDS on Fixed Deposit
The following are the some important points on TDS on fixed deposit:
1. Interest on fixed deposit is taxable and will be deductible from the source.
2. If the total interest amount of up to Rs.10000 is not taxable.
3. If the total amount exceeds Rs.10000, 10% will be deducted as the tax.
4. Tax liability for TDS purpose is determined at branch level. So, it is advisable to split the deposits into different branches and cut the tax rate. You can read top 5 fixed deposit rules.
Form 15H
You can submit the form 15h, if the person is above 65 to avoid the TDS. You should know that only a person of 65 years or more is eligible to file Form 15 H.
Form 15G
This form is for the age below 65. For example, Mrs. X earns Rs.25000 from the interest in a year. She does n’t have any other income and housewife. She is eligible to file the form 15g and give it to the bank before March 31st. The tax will not be deducted from the source. There is no need to get the approval from income tax officers.
Update : Top 6 Rules for TDS on Fixed Deposit
Tax Saving Tips : Tax Planning for 2009
Summary
In this article I have written about the form 15h and form 15g to avoid the tax deduction at source. This might be useful for saving the tax by splitting you deposit money into other senior citizens in your family. This is time to think if you have plan to open a fixed deposit account. Thank you for reading the article!!! If you have any doubts please post it in the comments section.
You can subscribe to our future articles here.
Related posts:
- Top 6 Rules for TDS on Fixed Deposit Introduction Earlier I have written one detailed article about How...
- What you should know about Form 15g and Form 15H Introduction In this article I will be writing about...
- PNB Tax Saver Fixed Deposit Scheme Tax Savings Fixed Deposit I have written posts about the...
- Top 5 Rules for Fixed Deposit Investment Top 5 Rules for Fixed Deposit Investment In this article...
- Submit PAN to avoid the higher TDS deduction In my earlier article I have posted about the compulsory...
124 Comments on this post
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Chitra said:
Is there a limit for form 15G also? like if the interest earned from FD is more than certain amount then even if you are a housewife, you will be liable to pay tax.
April 16th, 2009 at 2:19 am -
krishnas said:
HI Chitra,
If the total interest income is crossing the non-taxable income, then you will not be eligible to fill the form 15G. It is advisable to discuss with branch manager. Form 15G is to be filled for the each branch. For example, you want to deposit Rs.800000. Then it is good idea to split and invest in the different branches. Tax calculation will be for each branch only. I hope this clears your doubts.
Thanks,
KrishnaApril 16th, 2009 at 4:34 am -
Praveen said:
Hi Krishna,
1. I’m a salaried person paying my regular taxes. Would I still be eligible for exemption of TDS for my deposits? What if the total interest for my deposit is 10000.00?
1. When you say “total interest”, do we consider the total interest of all our deposits we hold in all banks and branches? Or, is it just the particular branch of a bank?
2. Say, I already have a few deposits, together, earning more than 10000.00. Would I be able to transfer some of the deposits to another branch of the same bank, and claim no TDS?
Thanks in advance.
-praveenApril 25th, 2009 at 4:32 am -
Praveen said:
Hi Krishna,
One more qn. What are the implications if I hold a joint account with another person who’s not an earning member? Shouldn’t tax be exempted even if I’m in the taxable bracket?
Thanks,
praveenApril 25th, 2009 at 4:44 am -
krishnas said:
HI Praveen,
Thank you for asking the questions. Let me clear your doubts.
- First of all you cannot submit the Form 15G or 15H if you are already tax payer. Because 10% TDS is compulsory for the fixed deposit interest income.
- But, there is no tax up to Rs.10000 (Rs.5000 if it is corporate FD like Tata Motors, Mahindra Finance,etc). This rule is applicable for each branch.
- For example if you have FD of Rs.200000 on different branches, then these two interest income will not be added together for the tax calculation. It will be treated separately on each branches.
- For your second questions, I am not very much sure whether you can transfer FD to another branch to avoid the TDS. It is better to consult with concern bank branches.
- Instead of holding the joint account better deposit the money in the name who is is not in tax bracket.
I hope this clears your doubts. If you have more doubts please reply to this comment. I will answer your query immediately.
If you like to subscribe to our future articles, visit here.Thanks,
KrishnaApril 25th, 2009 at 5:29 am -
krishnas said:
HI Praveen,
TDS will be made on the first holder of the deposit/account. For the purpose of tax, the first holder (whose name appear first) is considered as beneficiary.
In case of TDS (Interest >10,000), the first holder has to submit form 15g/h, if his income is less than taxable.Thanks,
KrishnaApril 25th, 2009 at 9:11 am -
Praveen said:
Hi Krishna,
Thanks very much for the clarifications. But, more qns follow..
I’ve always had these qns in mind, and never had a clear answer. I think this would also help others who may be similarly confused.* Is it a legally right thing to do to put your deposits in different accounts in different branches? In other words, is this a legal loop hole? Or, was this rule (of TDS per branch) done to encourage people to put money in different branches. I can’t make much sense of these finance matters.
* I think, now-a-days, most bank branches are getting well inter-connected, and promoting one a/c. If you apply, they ask if you already have an account, and they’d suggest you to use the same to transact from this branch, or transfer it here.
* I learn that of the total FD value, only about 1L is assured by the bank (or, is it govt.?). So, in case of heavy losses, or bankruptcy, a bank would only be able to provide 1L max irrespective of your total FDs. This is a little surprising to me – I rather call it shocking! Coz, all thru, I’d heard FDs in nationalized banks are the safest options. What is the true picture here? Again, is the 1L assured per branch, or per person overall.
Thanks,
praveenApril 27th, 2009 at 1:48 am -
krishnas said:
HI Praveen,
1. You can open account in different branches. It is very normal that to open account in many branches and it is our freedom to do. But, keep in mind that it will avoid only the TDS. Even if you get the interest that is going to be income for you to show the income tax authority. While filing the income tax returns you have add all the interest income and pay the tax. If you have paid TDS then attach the TDS so that need not pay tax again. Are you clear with doubts now?
2. Deposit insurance and credit guarantee corporation (DICGC) is responsible for insuring all our deposits in the bank. The maximum amount of Rs.100000 is not for each branches, aggregate of all the deposits you have put in the different branches. Yes..even if the nationalized banks are not safe if we have bad time
.3. You can read this article in RBI site for more details :
http://www.rbi.org.in/Scripts/FAQView.aspx?Id=64Thanks,
KrishnaApril 27th, 2009 at 2:18 am -
Tejas said:
Deat Krishna,
i would like to know, when we need to submit 15G to avoid tax on fixed deposit.
example : i have booked one fixed deposit on 1st May, so what is the last date to submit 15G to avoid TDS on my fixed deposit.Thanks,
TejasApril 27th, 2009 at 6:19 am -
krishnas said:
HI Teja,
If you are exempt from paying tax, you need to present Form 15H when you open a Fixed Deposit and subsequently at the beginning of the following financial year.
At the end of the financial year, the TDS will be deducted on the basis of interest accrued on the Fixed Deposit(s) even if this interest has not been credited.
Thanks,
KrishnaApril 27th, 2009 at 8:50 am -
Anand said:
Hi,
I recently had TDS deducted from my salary account. My wife is non earning (housewife). If i make it a joint account with my wife, then will I be exempted from TDS?
May 10th, 2009 at 11:46 pm -
krishnas said:
HI Anand,
Thank you for the query.
When it comes to Joint account the first account holder is liable to show the income. But, there is some other rules which is considered for the TDS. You have to tell them whose income is deposited in the FD. For example, if you deposited your income as the FD, even if you make the joint account, you will be liable to pay the tax.
I would advice you to talk with bank because these are all related to banks. I know many nationalized banks are not even deducting the TDS (recently I spoke to one bank manager he said like that). I hope now you have some ideas on this regard.If you have any doubts, please reply to this comment.
Thanks,
KrishnaMay 11th, 2009 at 1:43 am -
UDVIGNI said:
If I invest 4 lacs in a bank with divided apx.45000/- each fd.
naturlly tax not deducted for indivisual fd.
question is tax deducted on whole amt or sepreate amt.?
Pl.ans.May 13th, 2009 at 5:33 am -
krishnas said:
HI Udvigni,
It is on branch wise. If you invest 45000 each FD in the same branch, then the total interest income will be clubbed and calculated the tax. If you want to avoid that, open FD in the different branch. I hope this clears your doubt. That too, you need to split it like 45000. In each branch, upto Rs.10000 interest income is non-taxable. Only if it crosses Rs.10000, then only they can cut the tax. It is better talk with the bankers. They may help you better.
Thanks,
KrishnaMay 13th, 2009 at 9:56 pm -
Anand said:
Hi Krishna
Thanks for the advice. In fact on talking to my bank ICICI they say simply submitting Form 15G (though am a salaried tax payer & the interest on FD > 10000) is sufficient to avoid TDS.
I guess then I need to declare the interest while filing I-T returns & pay the tax on that interest – at higher taxation rate?Regards
AnandMay 13th, 2009 at 11:21 pm -
krishnas said:
HI Anand,
Thank you for the comment. Yes..submitting the form 15g is enough, it depends on the banks.
It is your responsibility to show the income from your deposits while filing the tax returns. It will be higher rate if your taxable income is more than Rs.300000 p.a.. Normally the TDS is levied at 10%. In that case you can attach the TDS certificate from the banks while submitting the returns. Is it cleared your doubts?
Thanks,
KrishnaMay 14th, 2009 at 4:51 am -
UDVIGNI said:
Hi
Thanks for reply ,
actully I am now retire (Female) and got pf money and other amount ,
If I Invest total amt on fd ,
1st Q. pf invest amt is taxable.?
2nd Q.retirement amt is taxable.?
what is the safest Idea for (female) mean benifits.
Thanks.May 15th, 2009 at 12:40 am -
NILANJAN CHAKRABORTY said:
Hi Krishna,
I am very happy to see your website,I think in this way you are helping thousands of middle income group people. Thanks.
My question is :
I am an NRI, My wife is a housewife staying with me in Dubai. I have NRE & NRO savings a/c and my wife has only domestic s/b a/c. Could she open domestic FD a/c and submit 15G form to avoid TDS ?If I transfer money by cheque from my NRE / NRO a/c to her FD a/c or related s/b a/c , does it create any leagal conflict? To whom she has to submit 15G form ? She has no other income & no PAN Card.
If the interest from FD is around Rs. 1,50,000 pa then how much Tax to be paid?
Regards,
NilanjanMay 17th, 2009 at 9:11 am -
BONNY said:
Hi Krishna,
Could you please clarify & simplify the “declaration ” which one has to make while filing From 15G ? Is it hassle free for saving TDS on FD for housewife ?
Regards,
Bonny
May 17th, 2009 at 10:33 am -
Deepak Iyer said:
Dear Krishna,
I invested 85000 in HSBC @ 9.75 for 731 days on the 07th August 2007. They have deducted Rs. 1090 as TDS on this FD as of the 09th April 2009. When I took it up with the bank they are saying that the same is due to the fact that the anticipated interest earned is more than 10000, where as according to my calculation it is less than 10000. Can you tell me if whatever the bank is saying is right ?
Thanks and Regards
Deepak IyerMay 17th, 2009 at 11:36 pm -
krishnas said:
@UDVIGNI,
Thank you for the comments.
1)PF is fully tax exempt if you have completed the 5 years after tarting the PF account. That means your service with the company. If you have not completed the five years and wanted to tax the PF money, then it would be taxable.
2)I am assuming that retirement benefit is gratuity here. For the purpose of exemption of gratuity under sec.10(10) the employees are divided under three categories:
a)Govt. employees – In the case of govt. employees the entire amount of death-cum-retirement gratuity is exempt from tax and nothing is therefore taxable under the head Salaries.
b)Employees covered under the Payment of Gratuity Act, 1972 – The employees covered under the Gratuity Act who receive gratuity have been given exemption which is the minimum of the following amounts. Gratuity received in excess of the minimum of the amounts mentioned below is included in the gross salary for the purposes of taxation.
* The amount of gratuity actually received.
* Fifteen days’ salary (7 days in the case of seasonal employment) for every completed year of service provided the employment is more than six months.c)Other employees – In the case of other employees the gratuity received or receivable on his retirement or on his becoming incapacited prior to such retirement or termination of his employment or any gratuity received by his heirs is exempt to the extent of the minimum of the following amounts. The amount received in excess of the sums mentioned below is included in the gross salary of the employee for the purposes of taxation.
* Actual amount of gratuity received.
* Half month’s average salary for every completed year of service. (Average salary means the average of the salary drawn by the employee for 10 months immediately preceding the month in which he retires)I hope this clears your doubts. If you have more doubts please reply to this comment.
Thanks,
KrishnaMay 18th, 2009 at 12:49 am -
krishnas said:
@NILANJAN CHAKRABORTY,
Yes..your wife can start domestic FD account and then submit the Form 15G to avoid the taxes. But, when she opens the FD, she will have to declare the source of income for the deposit amount. I would suggest you to tell your wife to go near by branch and collect the full details. Some times it may differ from each bank. This kind of process will be easy in private banks like HDFC,etc. PAN card is compulsory if the deposit amount is more than Rs.50000 in most of the banks.
I hope this clears your doubts.
Thanks,
KrishnaMay 18th, 2009 at 12:56 am -
krishnas said:
@BONNY,
The form 15G should be submitted to the banker for your FD account. It is wise if you can do while opening the FD account. This process has to be done for every financial year. There won’t be difficulty process involved in this, it will be easy for anyone to submit the form. bankers will help you to submit he form.
Thanks,
KrishnaMay 18th, 2009 at 1:03 am -
krishnas said:
@Deepak Iyer,
It will be good if you can ask them how the interest amount will cross the 10000 limit. I know the TDS process is differ from the each bank valuing their customers.
Thanks,
KrishnaMay 18th, 2009 at 1:06 am -
Vaibhav said:
Hi Krishna,
I would want to invest Rs. 5,00,000 as FD in the name of my child (minor). The annual interest accrued will be more than Rs.10,000 p.a. which means TDS will be deducted.
Could you please let me know how to avoid this TDS.. will i have to fill in the form 15-G on my son’s behalf as the interest is his only source of income.
You help will be highly appreciated.
Regards,
VaibhavMay 20th, 2009 at 4:33 am -
krishnas said:
HI Vaibhav,
When your son is minor, the income he earns will be clubbed in to your hand if your income is higher in the family. (If your wife’s income is higher it will be added to your wife’s income). In this case you have to think about saving that money from the tax. To avoid the TDS, you can split the amount and invest in different branches. In which bank you are planning to open Fixed Deposit?.
If your spouse is not employed, you can invest in her name and submit the form 15g.
Thanks,
KrishnaMay 20th, 2009 at 4:41 am -
Shailja said:
My ex-husband is NRI, he wants to do FD for our son till the date he becomes 18 years old. I and my son stay in India. My son is currently 8 years old. This FD will of value 250,00,000. What would be the tax implication of this FD? My salary is very much lower than my ex-husband’s. Apart from FD what other safe instruments which need one time payment only will meet our situation?
May 21st, 2009 at 7:12 am -
krishnas said:
HI Shailja,
Rs.2500000 is not a small amount. So, you will have to pay the tax for the interest income. If you want to avoid any tax problem, you can invest in the real estate like buying the lands or house. That will be more valuable investment. If you deposit lump sum money into the bank, it will attract income tax persons also. Make sure that you have all the documents for how you got the money.
If you have any doubts, please reply to this comment.
Thanks,
KrishnaMay 21st, 2009 at 8:08 am -
Shailja said:
Thanks Krishna for your reply. To add further, can real estate be bought in the name of a child? Further in case of an FD in name of minor where guardian is Mother and father is NRI, and FD is made by father in name of child, what are the tax implications? Does mother have to show in her income? Mother and child stay in India.
May 22nd, 2009 at 3:10 am -
krishnas said:
HI Shailja,
Yes..the property can be bought in the name of child. Child’s father is responsible for the tax on the investment.
Thanks,
KrishnaMay 22nd, 2009 at 4:40 am -
samir said:
dear sir
i HAVE FIXED DEPOSIT NRO ACCOUNT WITH AXIS BANK. HOW CAN I SAVED TDS BUT I STAY IN UAE
May 25th, 2009 at 4:21 am -
Vivek said:
Dear Krishna,
Even if I split my FD’s among different branches, I will have to declare my total interest income at the time of filing returns and pay 30% tax on it. So how does splitting across branches help?May 28th, 2009 at 10:07 pm -
krishnas said:
HI Vivek,
The idea is only to avoid the TDS from interest income. At the time of filing the return, it is your responsibility to show the income.
Thanks,
KrishnaMay 28th, 2009 at 10:40 pm -
Swati said:
Hello,
I had created an FD of Rs.5 lacs in Jan 2009 and had filled Form 15G in last week of March 2009. Bank has still deducted TDS. Is this appropriate? Although I can claim back the TDS after filing tax returns, it takes a long time to get back the amount. Can I take any action against bank if this is inappropriate?
Regards,
SwatiJune 28th, 2009 at 11:17 am -
Avinash said:
Hi Krishna,
You have good knowledge in FD and TDS area and you are proactively sharing it to all, this sounds good…
Please advise me on following.
I am salaried person and my wife is household. I am planning to invest in corporate FD in DSK Builders. In this case,
How safe is invest in corporate FD with DSK?
TDS will deduct on interest of above 5000 (Corporate FD) . How can I save this TDS? Can I make FD in my wife’s name and some money on my father’s name being as a Sr.Citizen person?
Thanks
AvinashJuly 2nd, 2009 at 3:14 am -
krishnas said:
Hi Swathi,
You cannot take any action against the bank. You have to submit the Form 15g at the time of opening the account in case if you want to avoid the TDS. Otherwise you have to wait till you get the refund. Form 15G is applicable only when your total income is under tax slab.
Thanks,
KrishnaJuly 2nd, 2009 at 6:36 am -
krishnas said:
Hi Avinash,
Thank you for the comments.
It is good idea If you are investing in the corporate FD schemes. You have to consider that corporate FDs more risk compare to investing in the banks. I want to know what is the reason you selected DSK FD schemes. Please look into the history of that company before investing. I would advice not to invest more than three years for the corporate FD schemes.You also go through the schemes provided by Tata Motors and Mahindra Finance. They are well known when you are talking about the corporate FD schemes.
If you want to save TDS, please submit the Form 15G to them. It is only when your total income is below tax slab. You can do this for your wife.
If you have more doubts, please reply to this comment.
Also Read:
http://www.thinkplaninvest.com/2009/04/tax-planning-for-2009-part-2/Thanks,
KrishnaJuly 2nd, 2009 at 6:49 am -
Avinash said:
Hi Krishna,
Thanks for your prompt reply.
Reason behind for investing in DSK FD is that, they are offering 12.50% P.A. interest (12.00% for below INR 1 L). As I have gone through all it’s financial details and they are doing this business since last 20 years and as of now no cheque bounce and problem reported (at least in my readings). I am planning to make FD only for first 1 year and DSK is offering quarterly interest and interest cheque will pay (for 4 quarters) well in advance.
In current situation, All banks are not offering interest more then max 8.50% P.A.
So I can make FD (50% of my investment amount) on my wife’s name as well as 50% on my father’s name. Both they are not earnings. Will it save my TDS? What would be the limit for both of them for tax exemption..
Thanks
AvinashJuly 3rd, 2009 at 12:32 am -
krishnas said:
HI Avinash,
Thank you for the detailed answer. I am happy to see that you have investigated on the company before investing. Obviously 12.50% is good interest rates because nowadays banks offering below 8% for the fixed deposits.
It’s good idea to split your investment for your wife and father. If you are investing in the corporate FD, if the total interest income is above Rs.5000, you will have to pay the tax. In case the investor doesn’t have any other source of income, it is advisable to submit the Form 15G to avoid any TDS. In your case, please submit the Form 15G for your wife and your father. Upto Rs.150000 for men and Rs.180000 for women will not be tax deducted.
Submit the Form 15G while opening the account itself. One more important point is you have to submit the form 15g every financial year.If you forget to submit the form, they will deduct TDS and you have to claim while filing the tax returns.
I hope this clears your doubts. Please update me once you have opened the FD account with DSK. Share your experience with us.
Thanks,
KrishnaJuly 3rd, 2009 at 1:40 am -
Avinash said:
Krishna,
Great …..
You have provided most useful information and really thanks for that.
1) It means that I can earn maximum interest on FD’s without TDS is (1, 50,000 (Men Tax Exemption) + 1, 80,000 (Women Tax Exemption) = 3, 30,000) subject to filling the Form 15G and both of them are not earning money. May I correct? Kindly confirm.
2) As every one know that investing money in corporate sector FD are high risky, however to avoid unseen circumstances, can I take insurance on these corporate FD’s? If so, then please let me know who all those insurance copmanies that will cover insurance on fixed deposits?
Warm Regards,
AvinashJuly 3rd, 2009 at 3:04 am -
krishnas said:
Hi Avinash,
1) You are correct. Regarding the form 15G please talk with the corresponding company(DSK), they will guide you properly. Some govt. banks not even doing the TDS even if not submitting the form 15G.
2)You cannot insure the fixed deposit. I have already published one article about the How to Insure a fixed deposit?. This article explains the important details related to the insurance cover for the fixed deposit.
I would advice not to invest more money in the same company. Try to invest in the different banks or institutions. That will help you to avoid the TDS and rick.
Note: TDS is calculated for each branch. So, if you have money in the different branch. That will not be added for the TDS purpose. That’s the reason many people open accounts in different branches.
Thanks,
KrishnaJuly 3rd, 2009 at 4:31 am -
Deepa said:
This article was really useful…Thank you so much for your valuable advice on How to avoid TDS
Thanks,
DeepaJuly 12th, 2009 at 9:55 pm -
PANKAJ MIGLANI said:
Sir,thanks for your advice ,but we want to know that how can we get good interest if we invest Rs. 100000 or where should we invest so that we get a good interest quarterly?
July 16th, 2009 at 10:19 am -
krishnas said:
HI Pankaj,
If you want to invest with high interest rates, please choose any of the corporate Fixed Deposit schemes. That will be the good option because you are investing less money with short duration. You will get good interest rates. The following are the few of the corporate Fixed Deposit schemes available in India, please choose which one you prefer.
1)Tata Motors
2)Mahindra Finance
3)DSK Builders
4)Bombay Dyeing
5)Sejal GlassFirst two are most trusted companies because of their brand name and history. DSK also has good record, Last two I am not aware of their history. You can choose any of the above after seeing the best interest rates.
I hope this explanation will give you enough idea. When you open a fixed deposit please share your experience here. It will help others.
Read : Fixed Deposit Articles
Thanks,
KrishnaJuly 16th, 2009 at 7:15 pm -
Shiv said:
Krishna,
Thanks for such an excellent article and sharing your knowledge with everyone.
I have a doubt on TDS:
Banks deduct TDS on interest earned on FDs only if the interest is more than 10K.
Does it in anyway mean – if interest earned is up to 10K then we don’t have to pay income tax on it and don’t need include it as an income while filing the income tax returns.I feel any income earned is liable for taxation unless it falls in any exception/exemption.
Thanks,
ShivJuly 19th, 2009 at 1:24 am -
krishnas said:
HI Shiv,
Even if it is less than Rs.10000, you have to show in your income tax returns. You will have to pay tax along with your other income. If your bank deducted the tax, you have to attach the TDS certificate.
Thanks,
KrishnaJuly 19th, 2009 at 7:36 pm -
Dhanajay said:
Hi.. Krishna.. today only first time i visited this site & got answers for many quaestions for wchich i was searching many web pages.. Thnx
My query is,
1. Interest upto 10000 is exempted from TDS But whether i have to apy TAX as self assesment TAX.
2. Inetrest recd in Savings Bank A/C is TAXABLE & if exepted upto what limit it is exepted. (i recd approx Rs.4300 from Interest/ Branch manager said that no TAX on this interest..
Kindly clarify
Thnx n best wishes
July 19th, 2009 at 10:46 pm -
krishnas said:
HI Dhanajay,
Thank you for the comments.
1. Yes..you have to show the interest earned as income in the IT return.
2. May be the bank manager telling you that there is no TDS for savings bank account. But, you have to show the income in the IT returns.
Thanks,
KrishnaJuly 20th, 2009 at 3:42 am -
Dhanajay said:
Thnx a lot…
July 20th, 2009 at 5:00 am -
Ravi said:
Hi Krishna,
I am salaried person and my dad is retired person. My mother and wife are house wives. We had old land which we have sold now. We got 10 Lakh. What is the best way to deposit this amount in the bank? The idea is to avoid the tax and questions from Income tax people. Please suggest.Thanks,
Ravi
July 20th, 2009 at 11:18 pm -
krishnas said:
HI Ravi,
The problem normally arises only when depositing huge amount in the single place. It is better to split the amount and deposit in different branches. You can deposit some money in wife’s name and submit the Form 15G to avoid tax on interest. You and your father can’t submit form 15G since you are earning money.
Hope this clears your doubts.
Thanks,
KrishnaJuly 21st, 2009 at 1:10 am -
Ravi said:
Thanks Krishna. What’s maximum interest a Form 15G can cover? and is it fine if we (me & dad) put some amount in our names which can fetch less than 10K interest?
In general, how does IT group get notified about the transactions and when they question bank customers?
Please clarify.
July 21st, 2009 at 5:32 am -
PANKAJ MIGLANI said:
sir,
how many fd will be needed for 18 lacs and how tds can be avoided on interest on this amt?
please advice.July 21st, 2009 at 10:46 am -
krishnas said:
HI Ravi,
1)Form 15G will cover only when the total interest is less than the tax slab. If it crosses then you have to file the income tax returns.
2)Yes…you and your father can deposit amount to get interest less than Rs.10000 to avoid TDS.
3)Normally when your bank transaction cross Rs.10 lacs for the financial year, then they will have to submit your account record to the RBI. IT officiers will check your PAN and IT returns if you are paid the correct tax amount. I don’t know whether this process is followed strictly.
Thanks,
KrishnaJuly 21st, 2009 at 6:56 pm -
krishnas said:
HI Pankaj,
I would advise you to talk to your banker. They will surely help you because when you invest more money, they will guide you to avoid the tax. Because it all depends on the interest rates provided by that bank.
Thanks,
KrishnaJuly 21st, 2009 at 6:58 pm -
subala said:
hi Krishna,
I am making the ITR-1 with TDS from employer and TDS from bank FD.
employer & Bank already detected the TDS(10.3%).when i make the ITR-1 calculation, I need to add the salary + Interest earned from bank as income head ? right !!. So the total tax will get increase from the tax paid(TDS(Employer)+TDS(Hank)).
do i need to pay the extra tax(since 10.3% already detected from bank & TDS from company also detected) ? or any other way to make the calculation.
Thanks,
subalaJuly 22nd, 2009 at 5:52 am -
krishnas said:
HI Subala,
You have to get the TDS certificate from the Bank and attach that with the IT returns. You need not give the rental income again. Why you have problem in employer TDS? they will provide Form 16 right? You just use that too file the IT returns.
Is this answer cleared your doubts?
Thanks,
KrishnaJuly 22nd, 2009 at 6:00 am -
subala said:
Hi Krishna,
thanks for quick responce.
Yes i got form-16(employer) + form-16a(bank). when submitting the ITR-1 we need to add the salary related + bank interest earned ? I am right ? say employer detected TDS for 5 lac of income & bank interest earned for 20k also detected TDS(10.3%).
tds on employment is 80k(eg.) & 2k for bank TDS (10.3%)
In the ITR-1 salary + interest we need add right? so total 5.2 lac. now the total tax will become for 5.2 lacs -> tax will become 88k(eg.). but we have already paid 82K(eg.) now 6k need to pay extra. is the calculation correct or am i making mistake ?
Is there any way to save the 6k money ?
thanks in advance,
subalaJuly 22nd, 2009 at 6:16 am -
krishnas said:
HI Subbala,
You need not pay any extra money because you just need to attache the TDS certificate from bank.
Thanks,
KrishnaJuly 22nd, 2009 at 8:01 am -
Dhanajay said:
Is it worth/ secure to have a deposit in DSK/Mahindra
July 23rd, 2009 at 11:57 pm -
krishnas said:
HI Dhanajay,
Yes..they have good history. Especially mahindra has good record as the reputed company. You can trust them. But, don’t lock all your money with single company.
Thanks,
KrishnaJuly 24th, 2009 at 3:38 am -
kshitij said:
Hi,
I deposited 2 lacs in a housing scheme with provision that till project launch the deposit will be treated as FD and 8% interest will be provided. But when project was delayed, I asked for money, I was suggested to take loan on 75% amount with 9% interest and i opted for that and got 1.5 lacs.
Ultimately when project never came up; i asked for money. I was given 38k and 3.7k tds was deducted. It was kind of cheating as they applied 1% interest per month rather than 9% on loan. This way I lost a lot of money and paid TDS also. Now my questions are:
a) Since i actually lost money, can I adjust this money against my other tax liabilites and save 3.7k.
b) If i still need to pay tax then as Subala’s example can i assume I need not pay any extra tax because if I add it in income, it will be in 30% tax bracket and I will have to pay 7.4k extra.
c) Does this 10% tax rate apply on savings interest and dividends as well or I need to add that amount into my income i.e. 30%. I have got some other FD income where TDS was not deducted.
d) Can I show above mentioned losses into short terms loss? Not sure loss will be around 12k(2 lacs – 1.5 lacs – 38k) or 48k(2 lacs – 1.5 lacs – 38k + 36k i.e. interst earned).Sorry, my questions are not completely related to FD. I would really appreciate for any help/suggestions.
Thanks,
KshitijJuly 26th, 2009 at 8:54 pm -
rahul said:
Hi Krishna,
As you have mentioned in your previous reply to user query, that the Form 15G/15H has to be provided to the bank for that financial year. What happens is the FD is opened and getting matured in two financial year.? Do we have to provide two form for 2 financial years?
Example: suppose I have an FD for 8 lacs opened for 1 year on date 27/12/2008 and maturity on 27/12/2009. The interest income is more than 10000 so I have submitted only 1 form. Will this form be for financial year 2008 /2009? Do I have to submit 2 form for each year ?
Hope you understand my question and will reply ASAPThanks
RahulAugust 4th, 2009 at 3:59 am -
Mini said:
Dear Mr. Krishna,
I am an unemployed housewife. I have FD’s in the Bank against which I am annually earning around Rs. 1,10,000. As this is below the exemption limit of Rs. 1,90,000 for women, can I file a 15G form to avoid TDS.
Regards,
Mini
August 5th, 2009 at 11:25 pm -
krishnas said:
HI Mini,
Yes..you can submit the Form 15G to avoid the tax. You have to submit this for the every assessment year.
Thanks,
KrishnaAugust 7th, 2009 at 10:58 pm -
krishnas said:
HI Rahul,
Each year you have to submit the Form 15G to the bank to avoid the TDS.
Thanks,
KrishnaAugust 7th, 2009 at 11:00 pm -
Janak Gupta said:
Bank of Baroda Kolkata deducted TDS @10.3% from my Half Yearly interest paid on my GOI-Taxable Savings Bond 2003 inspite of my depositing with them the FORM 15G in time which they received on 3/April/2009. I was surprised to find from my Bank Statement that the Interest was credited by Bank of Baroda on 3/Aug/2009 through ECS after deduction of TDS inspite of my submission of FORM 15G in time with the department.
Can I request Bank of Baroda to reverse the TDS and credit my Bank Account with the tax amount they have wrongly deducted from my Interest inspite of receipt of FORM 15G by them in time?
August 11th, 2009 at 5:38 am -
Usha said:
Hi,
I have a doubt regarding the Fixed deposit.
Last week I booked FD in HDFC bank for 2lakhs and the time period is 2years 16 days and I am getting 30000 interest.
According to the comments above,the interest is taxable,so
if I close the FD after 4 or 5 months,do I need to pay the tax?
if so how much they will deduct?
from the principal amount or the interest?Please clarify all my doubts..
Thanks.
August 11th, 2009 at 10:01 pm -
Manoj Thomas said:
Dear Mr. Krishna,
Thank you for all the valuable inforamtion that you are furnishing us. It is really very useful.
I have the following query:
I am an NRI for the past 19 years. In addition to my NRE Account, I also have a domestic SB account against which I have put 4 fixed deposits amounting to a total of 9 lakhs. Total annual interest earned from these deposits is around Rs. 72,000. Bank is deducting TDS for same.
Since I do not have any other source of income in India, can I file a 15g Form to avoid TDS ?
Your quick response will be highly appreciated.
Thank you,
Manoj
August 11th, 2009 at 11:17 pm -
krishnas said:
HI Manoj,
NRIs cannot file 15G forms. Even if filed, the form will have no effect on the Tax Deductor.
By Law, any person making any payment to an non resident is required to deduct tax at source. General percentage is 30 plus 3 % edu. cess.
Please obtain a PAN with the help of ICICI Bank. Log on to their website http://www.icicibank.com.
Please file a return and take the refund of tax deducted, if your total income from FDs in India is less than Rs. 1,50,000 (upto 31.3.2009) and Rs. 1,60,000 (after 1.4.2009).
NRIs have to make a special application to the Assessing Income Tax Officer who has jurisdiction to assess their income and only if the ITO permits, no tax will be deducted.
If you have any more helps please reply to this comment.
Thanks,
KrishnaAugust 12th, 2009 at 7:03 pm -
krishnas said:
HI Janak Gupta,
It is better to talk to the bank about the transaction.
Thanks,
KrishnaAugust 12th, 2009 at 7:39 pm -
Sherwin John said:
Dear Mr. Krishna,
I am an NRI working in the Gulf. I plan to quit and return back to India next year.
In view of above, I have the following queries with regard to the money in my NRE Savings Account.
1) How long can I retain my NRE Savings Account and NRE Fixed Deposits after my return back to India ?
2) After my return to India, can I put the money from “NRE Savings Account” to Domestic Fixed Deposits ?
3) As I will not be having any other source of income in India, can I submit a 15G form to avoid TDS if the interest earned against the above FD’s is below the exemption limit of Rs. 1,60,000.
Your assistance will be highly appreciated.
Thank you,
Sherwin John
August 22nd, 2009 at 11:48 pm -
krishnas said:
Hello Sherwin John,
Thank you for the comments.
1)If you are coming back permanently then you have to close the account immediately. This one I have clarified with the HDFC bank. Another source told that You can retain them in the same character for 90 days after return. But, you can talk to your bank also to verify about that. It depends on the bank rules.
2)Yes..surely you can deposit that money to local fixed deposit.
3)You can submit the Form 15G to avoid the TDS. This article will help you to understand about the Form 15G :
http://www.thinkplaninvest.com/2009/08/what-you-should-know-about-form-15g-and-form-15h/Thanks,
KrishnaAugust 23rd, 2009 at 3:03 am -
venkat said:
hello Krishna sir
i am looking at returns after 5 yrs and after my retirement. i am comfortable in allocating 2000-3000 per month including both the plans. can u give suggest optionsAugust 26th, 2009 at 11:55 pm -
krishnas said:
Hello Venkat,
Please provide your plan in detail. Are you looking to invest in Fixed Deposit?
Thanks,
KrishnaAugust 27th, 2009 at 12:57 am -
Avinash said:
Dear Krishina,
Can you please suggest me that which documents I should check with DSK Developers before investing with them as a part of FD?
DSK Developers claims that they are not defaulter as well their rank is pari passu. There are no outstanding cheques except unclaimed.
Can you please elobrate more on above para? If possible can you please check below link and few tabs of reports (financial)
Thanks
AvinashAugust 28th, 2009 at 2:46 am -
Manoj Elango said:
Dear Krishna,
I am a NRI , i have invested in FD for a total sum of 15,00,000 INR for a period of 5 years in domistic FD account.
I am ready to pay the tax. Do i have any problem as the source of income is abraod and the deposit in made in Domistic FD accountREgards
Manoj
August 30th, 2009 at 3:15 am -
krishnas said:
Hello Manoj,
Thank you for the comment. You don’t have any problem in depositing the money from other countries since you are NRI. NRI need not show any proofs to the Indian government while bringing the money. Whatever income you are getting out of that foreign money, you will have to pay the tax. In your case, you have to pay tax for the interest earned from the fixed deposit.
If you have any other doubts related to filing the tax returns for interest income, please reply to this comment.
Thanks,
KrishnaAugust 30th, 2009 at 3:21 am -
Manoj Elango said:
Dear Mr.Krishna,
Thank you for your prompt reply on my subject.
I have one more clarification.in what time frame My tax will be calculated for instant
I invested –6 Lakhs on December 2008
Second deposit of 4 Lakhs on May 2009
And finally the third investment of 5 lakhs on August 2009
when really i have to file the tax return for the above .All the above investment are deposits for 5 years term(Cumulative ) so i will get the return only after the 5th year .How to calculate the tax for this .
Kindely clarify
Best regards
Manoj
August 30th, 2009 at 3:36 am -
krishnas said:
Hello Manaoj,
Thank you for replying back. You told you have deposited the fixed deposit on 5 years. In this case there is two chances the tax will be calculated.
1. Accrual of interest income. At the time when interest income is calculated and then accumulated to the FD for the next year.
2. Maturity of the fixed deposit. You have to pay the tax only when completing the 5 years.
If your bank is doing like in first case, you have to file the IT returns for each financial year. Mostly it will be like before July 31st you have to submit the return. The financial year ends on March 31st.
If your bank is doing like in second case, you have to file the IT return only when FD is matured.
I would advice you to check with the bankers about their process related to tax in FD interest income. Because every bank has different procedure following for their customers. They may give you option to choose any one from the above.
What are the banks you have invested?
I hope this clears your doubts. If you have any experience or info related to FD, please post it here. Other readers will be benefited.
http://www.thinkplaninvest.com/2009/08/interest-on-tax-savings-term-deposit/
Thanks,
KrishnaAugust 30th, 2009 at 3:53 am -
usha said:
Hi Krishna,
I have a doubt regarding the Fixed deposit.
Last week I booked FD in HDFC bank for 2lakhs and the time period is 2years 16 days and I am getting 30000 interest.
According to the comments above,the interest is taxable,so
if I close the FD after 4 or 5 months,do I need to pay the tax?
if so how much they will deduct?
from the principal amount or the interest?Please clarify all my doubts..
Thanks.
UshaAugust 30th, 2009 at 11:18 pm -
krishnas said:
Hello Usha,
The tax is payable only for the interest income. That too if it exceeds Rs.10000 for the each year.
Thanks,
KrishnaAugust 30th, 2009 at 11:22 pm -
Manoj Elango said:
Dear Krishna,
Thank you for your email .I have deposted in Tamil nadu power finance cooperation ( Government of tamil nadu )
http://www.tnpowerfinance.com/deposit.htm
The scheme is CUMULATIVE INTEREST PAYMENT SCHEME (CIPS-1)
for the period of 60 months .I received from the deposit certificate mentioning the return amount on maturity every time i deposited for example 6 lakhs deposit i received the certificate mentioning the total amount of 10.4 Lakhs return on the 60th month. in this case i can pay tax once i receive the matured amount???if i am right
Do i want to file tax return even if i dont have any tax for 2009 and 2010???
what is the best way to apply PAN card from abroad.
Kindely calrify.
REgards
Manoj
August 31st, 2009 at 1:35 am -
nikunj bhartia said:
hi,
i am into real estate business..we will be launching a project very soon in which we have planned to F.D the whole profit we make..as the amount will be more than 20 crs and we are 20 partners,so can you please suggest us a way by which we can save TDS..we will be investing in 1 particular bank only..what if we form a trustee and make an fd in the name of it??
my 1 more doubt is ,suppose there are 2 persons x & y..if x makes an fd of 2 lakhs for n number of years,under what criteria can y take the fd after n years(y is not in any kind of relationship to x)..August 31st, 2009 at 2:26 pm -
krishnas said:
Hello Manoj Elango,
This link would help you:
https://tin.tin.nsdl.com/pan/form49A.htmlThanks,
KrishnaAugust 31st, 2009 at 5:18 pm -
Avinash said:
Hi Krishna,
You articles are excellent.
I have invested in FD in most of the bank and as per the latest rules, total income from the interest is above Rs. 5000 is taxable instead of Rs. 10000.
Also some of the bank are having an option of Recurring Deposit where No TDS is required.
eg: For Citibank, Recurring Deposit plan
* This is offered to individual Savings Accounts customers only
* Place a monthly standing instruction to automatically debit your account and book a Recurring Deposit***
* Choose tenures ranging from 12 months to 24 months. You can choose to book from INR 1,000 to INR 20,000 per month
* No ‘Tax Deducted at Source’ on your Recurring DepositHow does this work ?
September 10th, 2009 at 9:56 pm -
krishnas said:
Hello Avinash,
Thank you for the detailed comments.
1. Rs.5000 will be for the company deposits. If you are depositing in the banks it is Rs.10000.
2. The rules for TDS is same for all the banks. Any income from interest is liable to pay tax. If not TDS then you have to show it while filing the IT returns. But, I am not sure why citibank is not deducting TDS for the recurring deposit. As far my knowledge, TDS is not strictly followed by all the banks. Some of the banks not deducting any tax if they are the regular customers.
What you have said is found here:
http://www.online.citibank.co.in/products-services/investments/deposits/deposits-features.htmDo you have any other questions?
Thanks,
KrishnaSeptember 11th, 2009 at 2:43 am -
Avinash said:
Hi Krishna,
Thanks for the reply.
With regards to the
“total income from the interest above Rs. 5000 is taxable”If I go via bank websites like HDFC, SBI, CITIBANK all are asking to Fill the form 15G/H in case if the interest goes above Rs.5000.
eg: HDFC
http://www.hdfc.com/deposits/deposites_individuals.asp#bSeptember 11th, 2009 at 4:28 am -
krishnas said:
Hello Avinash,
What you have seen is there is no TDS for the “deposits” upto Rs.5000. That is not the interest income upto Rs.5000. I think you have confused with the meaning of that statement. You read the following page which says Rs.10000 for TDS deduction:
http://www.hdfcbank.com/personal/accounts/fixed_deposits/regular_fixed_deposit/regular_fd_faqs.htm#1I hope now you are understood. Thank you for reading and commenting on my articles. Keep reading our site, it has lot of useful articles on savings and financial planning.
You can subscribe here:
http://www.thinkplaninvest.com/subscribe/Thanks,
KrishnaSeptember 11th, 2009 at 4:50 am -
Avinash said:
Thanks… Now its very clear.
Thanks again..The blog rocks.
I used to pay more than a lakh in TAX every year and was very reluctant when it comes to SAVINGS, since I had no knowledge on it. Believe me most IT folks are very poor when it comes to TAX savings.But after reading all your blogs, which even a layman understands, and getting all your queries answered, I would advice everyone to subscribe to the blog by krishnas.
I am just your FAN..
Good work done Krishna !!
Regards,
Avinash
IT Manager,
HP, BangaloreSeptember 12th, 2009 at 3:08 am -
krishnas said:
Hello Avinash,
I am really very happy to read such a encouraging comments from you. For your surprise I too from IT company. I was paying heavy tax every month then started looking to the savings and investment to reduce the tax. Result is this excellent blog!!!.
Now I am spending most of the time reading all the financial news and posting it in this blog. I would be very thankful if you can pass this site link to your friends to refer any TAX savings. They also can subscribe to this blog here: http://www.thinkplaninvest.com/subscribe/.
If you have any doubts please post it here. I will be answering the questions quickly.
Note: I hope you have heard about the new Direct Tax Code which is proposed to be effective from 2011. Which is the complete revamp of exiting tax rules. I will start writing about that from October month. Keep watching this blog for more details.
Thanks again for your valuable time writing questions to me!!!.
Thanks,
KrishnaSeptember 12th, 2009 at 4:08 am -
Abhijeet said:
Hi Krishna,
Can you please tell if TDS applies to the NRE Term Deposits as well? I have an NRE account with SBI and want to open a Term Deposit (NRE) with them. This process is online through their web-site where they open a NRE term-deposit account (with the same branch as NRE a/c) connected to my NRE account; and there is no information provided there about TDS.
Also, can you tell if this is a good time to put money in FDs?
Thanks.
September 21st, 2009 at 7:36 am -
shwetha said:
Hi,
What do u think of JP Associates FD? They r giving high interest rate as compared to banks. I want to invest some of my father’s retirement funds.
They are not available online also thru icicidirect. Do u think its safe?Thanks.
October 9th, 2009 at 4:04 am -
krishnas said:
Hello Shwtha,
You don’t invest on the long term. Also do not invest more money in the companies like JP Associates. I would suggest you to invest in the banks for more safety since it is retirement money. don’t take risk on the money.
Thanks,
KrishnaOctober 9th, 2009 at 5:34 am -
Sanjay said:
Dear Krishna,
I got your site which surfing & searching through google. I have a question regarding TDS exemption. I working in an NGO/Non profit organisation whcih do not hold a Income Tax Liability every year. This Ngo get various project for implementation from various agencies and get the foreign contribution as indian fund. Foreign contribution is fully exempted from Income Tax. But in certain project the Indian Agencies particularly state govt make an agreement/contract with the NGO and releases the money after deduction of TDS whereas the NGO do not hold the tax liability and have to claim to the TDS refund in IT return. Is there any to get the exemption forn deduction of TDS by agencies. Please reply and thank you in advance.
October 10th, 2009 at 2:43 am -
Niraj said:
Hi Krishna,
I just went through all the conversations in the comments section and I really appreciate your efforts in answering all those queries promptly and in such an excellent way.
My Query:
My nephew (age: 14 yrs.) has a Fixed Deposit of around 25 lacs in a bank. The maturity date for the F.D. is only after she turns 18 years old. Since the interest earned is above the non-taxable limit, the bank refuses to accept form 15G, and around Rs. 20000 is deducted as TDS. Now, since she is a minor, she can’t file IT return to claim refunds (or can she? is there any way out?). Her parents are dead and I am her gurdian. If I club her income with mine, anyways I won’t get any refund because I am already a tax-payer (excluding her income). Please throw some light on this issue.Thanks & Regards,
NirajOctober 19th, 2009 at 12:52 am -
krishnas said:
Hello Niraj,
I would suggest you to consult any of the legal persons. I am not sure about the proceedings related to your issue.
Thanks,
KrishnaOctober 19th, 2009 at 4:46 am -
dhananjay said:
Sir,
i have gone thru many net pages on Investment.. evryone has marked PPF as the Best investment. i had calculated PPF Returns, which is showing Rs 5000 per month for 15 Years i.e. 9 lacs resulting around 17.42 lacs. whether this is best option than FDs/ RDs/ Jeevan Saral?October 24th, 2009 at 4:42 am -
krishnas said:
Hello dhananjay,
PPF is good investment option for the long term. Also you cannot invest huge amount on the PPF. Every year maximum of Rs.70000 only allowed. It is not wise to compare FDs and PPF. Purpose of the FD is different and you can choose your period.
It is advisable to diversify your investment like PPF,FD, mutual funds,etc.
Hope you are good now.
Thanks,
KrishnaOctober 24th, 2009 at 4:54 am -
Saritha said:
I have gone through all the discussions but still not clear with one point.
I have salary account with ICICI bank. I have fixed my FD in same account for Rs. 5,00,000 only for 1 month.
Do I need to submit any Form? Will the bank duduct the TDS and give me the remaining amount after FD maturity period?November 22nd, 2009 at 10:28 pm -
krishnas said:
Hello Saritha,
Yes. they will deduct the TDS. You can not avoid that if you are the tax payer.
Thanks,
KrishnaNovember 23rd, 2009 at 1:50 am -
Vijay said:
Hi,
I am a retired Colonel. I am an awardee of Gallantry Award hence my pension and pensionary benifits are non-taxable. If I invest money out of pensionary benefits into fixed deposits of corporates/Banks, will TDS be applicable?
regards
Col VijayDecember 8th, 2009 at 10:34 pm -
nilesh said:
hi krishna,
My wife was having software consulting business so as per IT laws TDS used to be deducted but due to recession there are no such orders so no TDS
but her earlier existing FDs are attracting TDS by bankers so to avoid
any tax deduction can you suggest which form is required?December 18th, 2009 at 9:25 am -
Sunil said:
Hello Krishna,
You are like god Krishna helping peoples,great work…
I would like to know if i sell shares worth Rs 10 lacs after 1 year 7 days,i will not pay long term cap gain tax because it is exempted,around 1.5 lacs will be deducted due to STT,SERVICE TX,BROKERAGE CHARGES…ok…So the amt will be around 8.5 lacs,iam not a salaried person,if i keep the money into the bank,how much the bank will cut tax?8.5 lacs..tax????
December 21st, 2009 at 11:59 pm -
vrajesh said:
dear sir,
i am having two fds. one of my fd got matured on 23.12.09. sbi bank automatically renewed it due to which my interest for this year went to Rs. 10900.00 and hence they deducted tds from account of about rs. 893.00. can the bank deduct the tds before the financial year gets completed. if i cancel my fd then the interest will remain below 10000.00 what action should i take. please suggest. thanks
regards,
vrajeshDecember 24th, 2009 at 5:17 am -
krishnas said:
Hello vrajesh,
Banks can deduct the TDS before the financial year end. You have to file the IT returns to get the refund.
Thanks,
KrishnaDecember 25th, 2009 at 9:05 am -
rajesh said:
Hai Krishna…
I need a clarification;
i have invested 2 lacs in a bank and for 1 yr.
Iam getting a interest of 1165/- per month (appox).
My total interest for the complete year is 14000/-
Do the bank will start deducting TDS from the first month itself? or it will be deducted after 8th month?
December 30th, 2009 at 10:40 am -
Amrit Shinde said:
Mr. Krishna,
I will sincerely appreciate if you could answer my question
Usually when we invest in a fixed deposit in COMPANY (corporate), I make sure that the interest is less than Rs. 5000/- to avoid any TDS (and I don’t have to fill out 15G). I didn’t mention my PAN card no.
I recently read that there was an amendment in TDS provision of Finance Act 2009. The amendment, as per the letter received from the companies, takes effect from April1, 2010.
My question is as follows:
1) (a) I do not have any taxable income for the year. (b) My interest is less than Rs. 5000/-. Considering these 2 criteria, is it necessary for me to furnish my PAN #?
2) What is the exact policy/provision regarding to the ammendment?Thanks
January 1st, 2010 at 1:07 am -
Unmesh said:
I have a fixed deposit of 9 lacs in INdia.TDS is being deducted by bank ( Corporation Bank).
Can i get TDS exemption since my income in india is below tax limits.
I get monthly intrest on the same.
Currently i am emplyed outside india therefore have no income in india and intrest accured from the fixed depsit can be free from tax/
.January 2nd, 2010 at 2:57 am -
Sasi said:
This is in regard to the Form 15G for getting interest without deduction of TDS.I am aware that a Non resident cant use this
form,but why does the from have a column” that I am/am not resident in India” unless the intention of the Government was that a
non resident can also use the form.
I think the government should issue a clarification if 15G can be
used by Non residents,or change the wording of the form.
Could you help in this.
ThanksJanuary 3rd, 2010 at 6:05 am -
Sunil said:
Hello,
I would like to invest a huge sum of money into the BANK FD, so should i deposit after 31st march 2010 and i dont fall under the taxable income,so should i also ask for form 15h while applying for FD,iam only 29 years of age..please let me know when we have to fill form 15g or h and submit the same.
January 10th, 2010 at 10:53 pm -
krishnas said:
Hello Sunil,
If you have not paid the tax in previous FY, then you can submit the Form 15G. Submit it while opening the account itself. Form 15G is for senior citizens.
Thanks,
KrishnaJanuary 12th, 2010 at 1:26 am -
manas shukla said:
I want to know the correct position of tds on joint deposits in a cooperative bank, further if i have a joint account with the member of that co operative bank whether tax will be deducted from my interest income or not .
January 15th, 2010 at 11:57 pm -
krishnas said:
Hello manas shukla,
TDS will be deducted if your interest income is above Rs.10000
Thanks,
KrishnaJanuary 16th, 2010 at 12:20 am -
Sanj said:
I have a FD which will earn a interest of Rs.6500/- at the end of 2012. So do I have to fill up any for the forms?
Please reply.January 19th, 2010 at 9:36 pm -
preeti said:
i want to know the amt of tds deducted on the investement of around Rs10,00,000 invested as follows
1 250000
2 300000
3 300000
intt rate is 8% p.a.February 6th, 2010 at 3:03 am -
Surinder Kaur said:
My age is 61 years. I want to know that if i deposit some amount of money in Senior Citizen Savings scheme.
Whether there is any TDS on this scheme, if yes then on How much Income from interest. If no then i want to know that whether its income from interest is free or taxable after fixed period of 5 years.Another query is that if i die due to any reason then Its income will be added in nominee’s acoount or not & he is applicable for TDS.
Or
Whether the income from Interest is added to Nominee’s Income Slab or not
Please reply soonFebruary 24th, 2010 at 5:33 am -
Kiran said:
Hi, Iam having fixed deposit in bank of india and for which Rs.1070 was deducted as tds by the bank and after submitting the 15G form they refunded back the amount Rs.1070. My monthly income is Rs.6000,and i don’t come under tax.as,my income is not subjected to tax. Is it needed to return file showing Nil return or just go on as it is?Awaiting quick reply from u.
regards
KiranFebruary 24th, 2010 at 6:36 am -
krishna said:
Dear Mr. krishna,
Thanks , there is guy is there to give suggestions and advises.
Recently I have received letter from ICICI bank saying that your interest exeeding 10,000, there fore I have been asked to submit Form G.
1. Is it possible to get Form G from internet.
2. Is there any seperate form for Form G for ICICI bank .
3 Can I down, sign and send it by post
4. Is there any possibility to change interest limit from 10,000 to 20,000 before march-10Your qucik advise and feed back will be appreciated
Thanks & regards
Krishna
March 2nd, 2010 at 11:34 pm -
shahid said:
what are the section under which ngo get exemption on their deposits from tds
March 10th, 2010 at 6:48 am
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