for not deducting TDS

This query is : Resolved

Ramanjaneyulu (Querist)
Follow

23 July 2011 i am working in NGO and we have FD in HDFC bank. My question which form we need to submit to the Bank for not Deducting TDS .

kindly give the details and sample format if u have.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

23 July 2011 You have to obtain 15AA Form from the Assessing Officer of Income Tax department.

Individual 15H
Companies 15AA
Association of Companies 15AA
Trusts 15AA

Format can be downloaded from Income tax website & Files section

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

23 July 2011 If a fixed deposit holder finds that his total interest income from fixed deposits won't fall within the overall taxable limits, he should immediately inform this to the concerned bank and ask them not to deduct the TDS from his fixed deposit account. This can be done by submitting a form as per Income tax regulations. Individuals, claiming such exemption have to submit form 15H, companies form 15AA, association of companies form 15AA and trusts must provide details in form 15AA. The form 15AA can be obtained from the assessing officer of the income tax department. In case there is an amount deducted by way of TDS on the interest earned on you fixed deposit, prior to your submission of application of exemption with the required documents, it won't be refunded. However, in all such cases banks will issue TDS certificates which can be used by the fixed deposit holders, while filing his income tax. If you open a fresh fixed deposit account with the bank and want exemption you will have to submit details in a new form. The older one submitted for an existing fixed deposits won't suffice.

For any TDS deducted by the bank, it will issue a Form 16A which can be used to substantiate the facts, while filing the income tax returns.

Upgrade to CAclubindia Pro. Subscribe Now!

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

23 July 2011 5[FORM No. 15AA :
Certificate under section 197(1) 6[***] of the Income-tax Act, 1961, relating to deduction of tax
[See rule 28AA]

Certificate No. _______________ Income-tax Officer,

*To
________________ __________________
_______________ _________________

Date ___________

1. I hereby authorise you to pay without deduction of income-tax, the 7[salary/] interest on securities/ interest other than interest on securities/insurance commission 25[commission (not being insurance commission) or brokerage] 8[/ rent] 9[/ income in respect of units] (strike out whichever is not applicable) payable by you on the undermentioned securities/sums credited in the name of ____________.

2. I hereby authorise you to pay the 7[salary/] interest on securities/interest other than interest on securities/ insurance commission 8[/ rent] 9[/ income in respect of units] payable by you on the undermentioned securities/ sums credited in the name of __________ after deducting income-tax at the rate of ________________ per cent and surcharge at the rate of __________________ per cent of the amount of the interest on securities/ interest other than interest on securities/ insurance commission 8[/ rent] 9[/ income in respect of units].

10[2A. I hereby authorise you to pay the undermentioned sum being in the nature of compensation or the enhanced compensation or the consideration or the enhanced consideration on account of compulsory acquisition of the capital asset without deduction of income-tax/ after deducting income-tax at the rate of _______________ per cent and surcharge at the rate of ________ per cent of such sum (strike out whichever is not applicable)].

3. This certificate shall remain in force up to _________________ unless it is cancelled by me under intimation to you before that date.

SCHEDULE I

Description of securities Number of securities Date of securities Amount of securities
(1) (2) (3) (4)

SCHEDULE II

Sl. No. Name and address of the person to whom the sums are given on interest Amount of such sums The date on which such sums were given on interest Period for which such sums were given on interest Rate of interest
(1) (2) (3) (4) (5) (6)

SCHEDULE III

Sl. No. Name and address of person responsible for paying insurance commission Amount of insurance commission
(1) (2) (3)

7[SCHEDULE IV

Sl.No. Name and address of person responsible for paying salary Period of employment Amount of salary
(1) (2) (3) (4)]

8[SCHEDULE V

Sl. No. Name and address of persons responsible for paying rent Amount of rent
(1) (2) (3)]

9[SCHEDULE VI

Sl. No. Name and address of the mutual fund Number of units Class of units and face value of each unit Total face value of units Distinctive Nos. of units
(1) (2) (3) (4) (5) (6)]

10[SCHEDULE VII

Sl. No. Name and address of the person responsible for paying compensation or the enhanced compensation or the consideration or the enhanced consideration on account of compulsory acquisition of the capital asset Amount of compensation or the enhanced compensation or the consideration or the enhanced consideration
(1) (2) (3)]

25[SCHEDULE VIII

Sl. No. Name and address of the person responsible for paying commission (not being insurance commission referred to in section 194D) or brokerage Amount of commission (not being insurance commission referred to in section 194D) or brokerage
(1) (2) (3)]

4. The certificate shall cease to be operative in respect of any of the securities/ sums mentioned herein which are transferred/ debited by the present holder to any other person, from the date you receive notice of such transfer/ debit.

(SEAL) ________________

Assessing Officer

Note : *Name and address of the person responsible for deducting tax.]

You can download it from
www.sunilramani.com/tds/form15aa.doc