TDS on company FD

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2009 I have following question regarding TDS on company fixed deposit:

1. If intrest in a FY on Company FD is Rs. 6000 then TDS will be deducted on Rs 6000 or Rs 1000 (6000-5000) I mean TDS will be deducted on whole amount or amount excluded exemption limit of Rs 5000?

2. If individual has income less than taxable income he has to submit FROM 15 G with application form of company FD only or in every FY? If every FY, then upto which month of the FY?

3. Can one submitt FORM 15G if he does not have PAN?

4. What is the maximum amount individual can invest in company FD so TDS will not deduct (i.e., interest in each FY <5000) For 3yrs @ 12 pa compounded monthly?

Thanks in advance

VINOD PARAKH

VINOD PARAKH (Expert)
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22 December 2009 1. IF THE COMPANY IS BANKING COMPANY , THEN TAX WILL BE DEDUCTED ONLY IF INTEREST EXCEEDS RS. 10000/- AND IN THE CASE OF OTHER COMPANIES IF INTEREST EXCEEDS RS. 5000/- TAX WILL BE DEDUCTED ON WHOLE INTEREST AMOUNT i.e. RS. 6000/-

2. DIFFERENT FORM 15G TO BE SUBMITED FOR EACH F.Y. AND LAST DATE OF FORM-15G SUBMISSION IS 31st MARCH.

3. YES.

4. 39000/-

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 December 2009 1. TDS on whole interest.
2. 15G has to be submitted in every financial year. Date of giving 15G is not mentioned in section 197A(1) and (1A) and in rule 29C. If a rational view is taken the said form should be given to the deductor before the first payment of interest.
3. From 01/04/2010 if PAN is not quoted TDS will be @ 20%. So ,as per my understanding, PAN may be quoted in clause 5 of form 15G.
4. Left open.

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