24 April 2008
My friend has FD's with certain branch of a Bank which are maturing in the year 2008-09 on which Interest worth Rs 8000/- will be paid to him.Now in this year (i.e. 2008-09) he wants to take another FD for a period of 1.5 Years(This FD will not mature in year 2008-09)on which interest upto end of March 2009 will be round about Rs 2500/- which will in fact accrue (as FD amount will not be paid upto March 2009).
Now my question is that if we dnt take this Rs 2500/- amount then interest amount is Rs 8000/- on which no TDS will be deducted.But if we take this accrued Rs 2500/- amount for the year 2008-09 then the amount of Rs 10500 is liable to be deducted?? I WANT TO KNOW THAT WILL BANK TAKE ACCRUED AMOUNT OF INTEREST FOR TDS PURPOSES??
25 April 2008
IN EVERY FIN. YEAR THE BANK/INSTITUTION HOLDING F.D WILL DEDUCT TDS ON MORE THAN RS 10000/- INTEREST, IF NO DECLARATION IS GIVEN FORM 15 G/H DURING THE YEAR (PREFERABLY IN THE BEGINNING OF THE YEAR). IF NO TDS IS DONE SO, ( USUALLY NO SUCH POSSIBILITY), THE TDS WILL BE DEDUCTED AT MATURITY/RENEWAL /ENCASHMENT WHICH EVER IS EARLIER. IN YOUR CASE EACH F.D AND INTEREST WILL BE TREATED SEPARATELY UNLESS THE NAME AND ADDRESS OF THE HOLDER IS ONE AND SAME. BETTER NOW THE HOLDER OF F.D SUBMIT FORM 15 G/F AND TAKE ACK. FROM BANK TO AVOID TDS IF HIS TOTAL INCOME IS BELOW THE IT EXEMPTION LIMIT. OTHERWISE TAKE THE F.D IN SPOUSE OR OTHER'S NAME( ONE CAN ASK BANK TO CHANGE F.D IN OTHER'S NAME) WHO DO NOT HAVE TAXABLE INCOME AND AVOID TDS . R.V.RAO
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