CA ASPIRANTS (Article) (155 Points)
21 November 2012If the total interest earned by a person from fixed deposits(FD) in banks is 1 lakh in current financial year and he has no other income, should he pay tax on it? If no, should he submit any declarations except PAN No. in bank?
I've read some where that if the interest on FD is above 10,000 in a financial year, its taxable.
The PAN No. has been given in all banks while opening FD.
Please help.
CS RAJESH C.CHOUDHARY
(ASSISTANT MANAGER)
(14607 Points)
Replied 21 November 2012
You can file form 15 G (if your age below 65 years) and 15 H (if your age is more than 65 years) to the Banker, to confirm that your income is not taxable under income tax act, as the limit of income tax does not exceed your interest amount.
In that case you have not to file your income tax return. Otherwise, you can provide yor pan only to the banker and after they charged T.D.S. You can file your return and claim for income tax refund.
Regards,
RAJESH CHOUDHARY
ANUBHAV VISHNOI
(-)
(150 Points)
Replied 21 November 2012
As the total interest from FD is below the maximum taxable limit and there is no other income, so you can give form 15G or 15H as the case may be to all the banks to avoid TDS, otherwise bank will deduct tax at source if interest amount is more than 10000 per bank branch.
thanx
Ramachandran Ravoori
(Individual)
(29 Points)
Replied 22 November 2012
The age limit for senior citizens has been reduced from 65 to 60 years. The form 15G or 15H can be filled only if the total income from all sources is below the taxable limit precribed for each category of individual after all deductions (such as 80C) are taken into consideration. The bank will deduct tax if the interest from all fixed deposits (under one customer ID) exceeds Rs.10000 unless form 15G/H is submitted.
CAclubindia
