Dear Sir/Madam,
I have a quick query on TDS by banks on Interest paid by banks on FDs.
If a Senior Citizen has a Nil Taxable Income & submits Form 15H to bank, will bank
deduct any TDS on interest paid by it to the customer on FDs if total interest exceeds exemption
limit Rs. 3.0L fot FY 2014-15?
I personally feel that even though Interest income exceeds exemption limit but after contribution
to PPF etc net taxable income can become zero & hence no TDS must be deducted by Bank.
Kindly comment.
Thanking you. Best regards, RAKESH
CAclubindia
