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Pure fd interest of rs2.75l and tds

Balaji Subbu (SAP FICO) (220 Points)

30 May 2016

Hello All

(1) If FD bank interest for the F.Y amounts to Rs.2,75,000/-, the TDS deducted will be Rs.27,500/-.

(2) The TDS hence deducted cannot be claimed as refund from IT since the total income exceeds the tax exemption limit of Rs.2,50,000/-

(a) Please let me know whether above statements (I recd from a our Bank Manager ) are right or not.

(b) My dobut is PURE FD interest of Rs2.75L and Diff is Rs25K which is the base to calculate the TDS. Pls clarify

Adv Thanks for your clarification

regards

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5 Replies

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 30 May 2016

Are you a senior citizen, if no, as per new rule 15H cannot be filled if total income is above base exemption limit, be it from pure FD or anything else, later thru filing return u can claim refund.

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Balaji Subbu (SAP FICO) (220 Points)
Replied 30 May 2016

Kaardaata

Pls improve your presentaion skills.

I am not able to understand your response.

Do you have skills how to expalian in a simple points? If so kindly explain once again in a simple points

reg

Ruchi (CA) (1410 Points)
Replied 31 May 2016

Considering your total income comprises of FD interest only, your tax liability will be 10 % of (2.75-2.5 )lakhs plus cess. You can claim the balance of tds as refund by filing your return.

Bank is however supposed to deduct tds on full amount of interest i. e.on 2.75 lakhs. Hence bank has also rightly deducted your tds. You should file your return and claim refund of balance tds.

1 Like

subhash kumar jha (PROFESSION) (445 Points)
Replied 31 May 2016

Simply understan if u r below 60 then total income upto 270000 there will be no tax and on balance 5000 @ 10 % = 500 so balance u can get the refund by filing return.