Tds on bank deposits for senior citizens

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 December 2012 My father mr x and mother mrs y r both senior citizens. They have separate pan nos. they operate a joint savings account with father as first holder. The aggregate interest on fd in this bank linked to this savings account is exceeding rs 250000. The fd's are with father as first and mother as joint holder. We have been advised to break the fd with half the fd's with my father as first holder, and the other half with mother as first holder. The new fd's will still be linked to the savings acct with my father as first holder in the savings acct. will doing this help us in avoiding tds as far as bank is concerned. After splitting the interest on fd will be approx rs 1.7 lacs on fathers fd's and approx 1.5 lacs on mothers fd's. the interest is qrtrly which will go in the same bank account held jointly by my father and mother. Pl advice.

Pankaj Gupta

Pankaj Gupta (Expert)
Follow

09 December 2012 Even after splitting the accounts, TDS will be deducted. Because interest above Rs 10000 in a year from FD account is eligible for deduction of tax .

Querist : Anonymous

Querist : Anonymous (Querist)

09 December 2012 Sir, sorry for the mistake. Both hav given the form 15 g/h as applicable to the bank, then still will the tds be applicable.

Upgrade to CAclubindia Pro. Subscribe Now!