My friend's brother is 21 years old but he is permanent disable being a special child. His father was passed away in a road accident. for settlement of death claim, insurance company handed one FD in name of the child and another one in name of his mother.
Now the bank is deducting TDS on the interest of the FD of the Child. I want to help him, kindly suggest how the deduction can be avoided.
Sugget him to file FORM 15 G,
In order to be eligible to furnish Form 15G, the non-senior citizen investor needs to fulfill the following two conditions:
1. The final tax on his estimated total income computed as per the provisions of the Income Tax Act should be nil; and
2. The aggregate of the interest etc. received during the financial year should not exceed the basic exemption slab which is Rs1,80,000 for men and Rs1,90,000 for women.
If both these conditions are satisfied, Form 15G may be furnished to the bank or the post office and the entire interest income can be received without tax deduction.
Thanks & Regards
Karandeep
CAclubindia
