Income tax on fd interest more than 2.5 lacs.

Technically if the income is above cutoff, you cannot fill 15G/H. bank will deduct and you claim refund.

Originally posted by : Kaardaata
	Technically if the income is above cutoff, you cannot fill 15G/H. bank will deduct and you claim refund.

As there will be such customers and such cases, there should be some procedure apart from deduction and claiming later.

Thanks for the reply.

But the person can submit Form 13 as per Sec 197 for lower deduction of TDS to Income tax officer as his TDS amount is more than the Income tax and technically his tax liability will be only Rs 3000 as rebate will be available for him an amount of Rs 2000.

Originally posted by : mohammad rasool baig
	But the person can submit Form 13 as per Sec 197 for lower deduction of TDS to Income tax officer as his TDS amount is more than the Income tax and technically his tax liability will be only Rs 3000 as rebate will be available for him an amount of Rs 2000.

Any procedure where we can tell the bank not to deduct more? What is this rebate of 2000? For 50,000 at 10% TDS should be 5,000.

Thanks for the reply.

What is the procedure?

You have to apply with filled form 13 with your local AO/IT Officer for certificate, once certificate is issues, yo can give to bank.

Originally posted by : Kaardaata
	You have to apply with filled form 13 with your local AO/IT Officer for certificate, once certificate is issues, yo can give to bank.

So, if the interest is more than 2,50,000, we cannot give 15 G at all? Going to the IT department is the only option or we can settle this with bank itself?

Thank you for the information.

No, we cannot give 15 G we should go to the AO and obtain non/lower deduction certificate from the AO, we can't settle with the bank. 

When we consider about the tax liability as his income was less than 5 Lakhs - he can claim a rebate of Rs 2000. So his tax liability will be Rs 3000 only (provided he has only interest income).

Originally posted by : mohammad rasool baig
	No, we cannot give 15 G we should go to the AO and obtain non/lower deduction certificate from the AO, we can't settle with the bank.  When we consider about the tax liability as his income was less than 5 Lakhs - he can claim a rebate of Rs 2000. So his tax liability will be Rs 3000 only (provided he has only interest income).

So, we cannot deal with the bank in this case, we have to get the form 13 from the AO and there is a rebate of 2000.

Thank you for the information.