11 June 2010
The interest earned this year in a particular Bank Account of my father, who is a retired Government employee, is Rs 11200/=. Kindly let me know what should be the exact TDS in the present context.
In routine process Bank will deduct tax at source on fixed deposit interest, if it is above Rs. 10000. The TDS is deducted at the rate of 10% (w.e.f.1-4-2010 If PAN will not be furnished then TDS will be deducted @ 20%). So to get the income tax refund, you have to file the income tax return. To avoid this process, you have to declare that you have not any taxable income. The main and only purpose of these forms, is to submit declaration in writing in duplicate that there is not tax payable on his total income. In this case the payer shall not deduct any tax at source.
* Form 15H must be used above 65 years old individual. * Previous year income should not be taxable. * Form 15H should be submitted before the first payment of interest on fixed deposit.
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