TDS on fixed deposit & filing ITRV on the same

POSTED BY Chaitanya ON August 7, 2011 1:26 pm COMMENTS (66)

Hello All,

I know that if the F.D interest income earned is below 10K pa then banks wont generally do a TDS, but suppose one earns 5-8k interest & his overall income comes under the income tax slab:

1) Do he need to file his 5-8 k interest as well?

2) If he doesn’t file it (unknowingly – lack of knowledge) & sends his ITRV, then what will happen? Will there be any notice issued form IT dept? And what steps needs to be taken then? Is there anything to get worried? Also what would be the charges/fine to refile it?

3) Is there any option to save the tax on the interest earned from F.D?

Thanks,

Chaitanya

66 replies on this article “TDS on fixed deposit & filing ITRV on the same”

  1. SAJAL says:

    HELLO,
    IAM A PENSIONER AGE 62
    OWN HOME.
    TDS DEDUCTED ON FD. WANT TO TAKE REFUND FROM INCOME TAX. WHICH ITR FORM SHOULD BE FILL. WHAT IS PROCESS.

    1. Hi SAJAL

      This query belongs to CA domain, hence we are not the right people to comment on this issue.

      I suggest you get in touch with a CA for this in your city.

      We also have a CA partner incase you want to explore that, Just fill in your details here and they will give you a complimentary call back

      https://www.jagoinvestor.com/pro

      Manish

  2. mamata says:

    hi im mamata can u filleup the form16A

    1. Hi mamata

      This query belongs to CA domain, hence we are not the right people to comment on this issue.

      I suggest you get in touch with a CA for this in your city.

      We also have a CA partner incase you want to explore that, Just fill in your details here and they will give you a complimentary call back

      https://www.jagoinvestor.com/pro

      Manish

  3. Siddhartha says:

    Hi Ashal,

    I’m filing ITR-1, the bank has cut 10% tax on the interest accrued from FD. While filing ITR, I mentioned it in income from other sources, the tax on this interest is again calculated at 20% since I come under 20% slab. In total, 30% tax is computed on the interest from FD while it has to be computed at 20%. How do I get the refund of the 10%?

  4. Vimmi says:

    I request you to please guide me on the following issue:-

    Brief of Case:- My SBI account just got mapped with my PAN in May 2016.
    I ve already filed my ITR 1 whereby claiming a refund of Rs 11406/-
    But today while checking up on my ITR 1 again I found that my Refund has increased by 7338, which is same as the amount of Tax being deducted by Banks over securities.

    Detail of my form 26AS is appended below:-

    1 699,964.00 30,315.00 30,315.00
    1 192 29-Feb-2016 F 23-May-2016 – 60,243.00 1,013.00 1,013.00
    2 192 31-Jan-2016 F 23-May-2016 – 58,391.00 700.00 700.00
    3 192 31-Dec-2015 F 01-Feb-2016 – 61,981.00 792.00 792.00
    4 192 30-Nov-2015 F 01-Feb-2016 – 57,191.00 3,090.00 3,090.00
    5 192 31-Oct-2015 F 01-Feb-2016 – 56,856.00 3,090.00 3,090.00
    6 192 30-Sep-2015 F 29-Oct-2015 – 57,688.00 3,090.00 3,090.00
    7 192 31-Aug-2015 F 29-Oct-2015 – 59,398.00 3,090.00 3,090.00
    8 192 31-Jul-2015 F 29-Oct-2015 – 57,888.00 3,090.00 3,090.00
    9 192 30-Jun-2015 F 08-Aug-2015 – 55,818.00 3,090.00 3,090.00
    10 192 31-May-2015 F 08-Aug-2015 – 56,568.00 3,090.00 3,090.00
    11 192 30-Apr-2015 F 08-Aug-2015 – 54,156.00 3,090.00 3,090.00
    12 192 30-Apr-2015 F 08-Aug-2015 – 63,786.00 3,090.00 3,090.00

    2 STATE BANK OF PATIALA 14,155.00 1,416.00 1,416.00
    1 194A 31-Mar-2016 F 18-May-2016 – 1,570.00 157.00 157.00
    2 194A 31-Mar-2016 F 18-May-2016 – 3,098.00 310.00 310.00
    3 194A 24-Jan-2016 F 18-May-2016 – 9,487.00 949.00 949.00

    3 STATE BANK OF INDIA 29,594.00 5,922.00 5,922.00
    1 194A 31-Mar-2016 F 16-May-2016 – 170.00 35.00 35.00
    2 194A 31-Mar-2016 F 16-May-2016 – 589.00 118.00 118.00
    3 194A 31-Mar-2016 F 16-May-2016 – 377.00 76.00 76.00
    4 194A 31-Mar-2016 F 16-May-2016 – 3,998.00 800.00 800.00
    5 194A 31-Mar-2016 F 16-May-2016 – 1,129.00 226.00 226.00
    6 194A 31-Mar-2016 F 16-May-2016 – 3,551.00 711.00 711.00
    7 194A 24-Jan-2016 F 16-May-2016 – 19,780.00 3,956.00 3,956.00

    please tell me following:-

    1. Is that possible for me to claim a refund for TDS over securities being deducted by Banks?
    2. If by mapping PAN card with my SBI account leads to only 10% deduction in place of 20% then should`nt it be the half of the amount of TDS by Banks?
    3. Deduction of tax is being booked by bank in May 2016 to Income tax deptt. so will that can be computed for year 2015

    1. Please ask short questions

      1. vimi says:

        Gentlemen….Que is short only…please read carefully…..there is a brief of the case for better understanding…

        Thank you

  5. KISHORE says:

    HELLO,
    IAM A PENSIONER AGE 75.
    OWN HOME.
    TDS DEDUCTED ON FD. WHICH ITR FORM SHOULD BE FILL.

  6. Bharath says:

    I am a NRI, I have no income source in india, but i have kept the FD in two banks & both the banks have deducted TDS. While efiling online, the amount of 3986 deducted from the bank is currently showing in the refund column as there is no source income. Where to fill these details of FD to make refund zero.

    Or is there any necessary to file ITR, only for FD interest deduction.

  7. subasree says:

    My mom is a sr. Citizen and she has got an FD interest of 1.65 pm in AY 2014-2015. For that Indian Bank have deducted 16000 as TDS. They have given a printed sheet along with details of amt deducted on interest. Should the Bank give us any certificate?

  8. bineet_mehra says:

    Dear Ashal

    I worked in Govt Organization from DEC 2008 to Aug 2012. I filed my returns till FY 2012-2013. In Sept 2011 I opened FD in SBI(Lets Call it FD-A) for which i got the TDS deducted in SEPT 2012. I did not know that i had to declare this interest and TDS deducted by bank in my return also and i filed the return based on my income. SO is it possible for me to correct my return for FY 2012-2013 ? And if yes then how ?

    My other question is that in 2012 i opened another FD different from the one mentioned above((Lets Call it FD-B). I closed it after one year ie in 2013. For this FD also TDS was deducted. Since i opened it after i left the Govt Organization, i thought since i am no more employed, i need not file any income tax return. Hence for FY 2013-2014 i did not file any return. But now i realize that i have to file return based on FD-A and FD-B. Is it ? Please note that since Aug 2012 i am not employed, i was doing Masters abroad.

    Now after closing FD-B, in Jan 2014 i opened another fixed deposit (Lets Call it FD-C) which is still running. So for FY 2014-2015, i need to file return based on FD-A (running), FD-B(closed), FD-C(running ) ? Please note that i am not employed and i have no source of income . I will be really really thankful to you for any clarification/suggestion you have. thanks …

  9. sagar large says:

    Hi Ashal,

    my income is under 2 lacks. i haven’t submitted my form 15H to the bank thus bank deduct tds on FD at 10% my question
    (1) how to get refund this tds?
    (2)what is specific time to submit form 15H?
    (3) for this deducted tds what certificate or form i should obtain from bank??

    1. Hi sagar

      1. You can get the refund by applying for it in return filing

      2. At the start of financial year , around Apr/May

      3. You will get TDS certificate from Bank

  10. Jayshree Solanki says:

    You can simply file your return and claim refund of the excess tax deducted.

    Visit www. nritaxhelp.com for more details.

    Thanks

  11. ashalanshu says:

    Dear Vibin, relax. You can claim your excess tax in the form of refund. You do not need to submit anything with your ITR. Please keep the proofs with yourself.

    Thanks

    Ashal

  12. vibinkumar says:

    Hi Ashal,

    Am a salaried person where my tax has been deducted for financial year 2014-15. During the investment proof submission I was out of station due to which i was unable to submit proofs & my tax was been deducted.

    I have read somewhere in the website that it is possible to claim the amounts from the income tax department if proper proofs are been submitted. Can you let me know if this is correct? If yes, what are the procedures for claiming the deducted amounts?

  13. ashalanshu says:

    Dear Libra, if her total income is less than 2L Rs., she does not need to file her ITR.

    Thanks

    Ashal

  14. libranavi1 says:

    Thanks Ashal! She has a Women Advantage Account with ICICI Bank. In that, they have option of having zero monthly average balance if we maintain RD of 2K. So, there is RD maintained for 2K. Do she need to file IT returns for the same?
    Beside that I am investing in PPF.

  15. ashalanshu says:

    Dear Libra, as it’s your money in FDs under wife’s name, please stop the practice. if you want to invest under wife’s name to escape from tax libaility, gift her some amount and invest in instruments where maturity amount is tax free like PPF, Eq. Tax free bonds.

    Thanks

    Ashal

  16. libranavi1 says:

    Ashal!
    In my case, it is mine, so I am including that for the tax payment. Was thinking if I can include that in my wife’s name and not include that in future … 😛

    But, In case both the partner are contributing to the joint account. Who will be liable to include that in the tax calculation?

  17. ashalanshu says:

    Dear Libra, whose money it’s ultimately in those FDs? 🙂

    thanks

    Ashal

  18. libranavi1 says:

    Thanks Ashal for your response.
    I had a query about tax in case of joint account. I have a joint account with my wife and she is primary account holder. Do I need to pay tax for interest on FD running on that?

  19. ashalanshu says:

    Dear Libranavi1, SB account interest is taxable but there is a deduction of 10000 Rs. under section 80TTA for interest on SB account. Hence if your interest from all SB accounts is say 12000 Rs. your taxable interest is 12000 Rs. but under section 80TTa, you can claim deduction of 10000 Rs. and hence your 2000 Rs. interest ‘ll be taxable.

    thanks

    Ashal

  20. libranavi1 says:

    Thanks Ashal for your response!
    FD interest is taxable but interest from bank account (saving account) is non-taxable if less than 10K. Please correct me if I am wrong?

    Thanks
    Avi

  21. ashalanshu says:

    Dear Libranavi, Fd interest is taxable even if it’s just 1 Rs. The 10K is limit for TDS application and below this limit, the interest is still taxable. In your given case, the FDs created and liquidated and interest received by you is taxable.

    thanks

    Ashal

  22. libranavi1 says:

    I have 2 queries regarding the tax implication on FDs
    1) Is interest on FD taxable, even if it is less than 10K per annum? I think it should be as this limit of 10K is applicable to interest in bank. Please correct me if I am wrong.

    2) I have an account in B2ICICI branch free in which money in excess of 5K are transferred to FDs and whenever the total amount in my original account is less than 0, that FD is liquidated and interest is payout to my account. Do I need to pay tax on that interest??

  23. ashalanshu says:

    Dear Kharawane, I’m trying to answer your queries.

    1. Yes

    2. That’s because, till date Income Tax people were ignoring such small interest things specially from SB accounts. Yes if any TDS has ben deducted against your Fd interest, you are bound to report it.

    thanks

    Ashal

  24. kharawanehn says:

    Hi Ashal,

    After your great support on SBI MaxGain here I come again for few queries on tax on Interest earned.
    1) As per discussion above, I understand that even though bank cut TDS or not, whatever interest one earns through FD or Savings account (May it be Rs 100 or Rs 10000), it should be declared as Income from other sources while filling the Income Tax return. Is my understanding correct?
    2) If point no 1 is true then till date I never saw or myself also never shown (Because of lack of knowledge) whetever interest I earn from my savings account as Income from other sources. But I never get any notice from Income Tax Department. how come that be possible?

    Please clarify.

  25. Ajinkya Darshane says:

    fantastic info Ashal…thanx a lot..keep it up!

  26. arun hariharan says:

    Dear Ashal,

    Suppose If a person has left a job in a year for higher studies and he has earned 3 months salary and pf withdrawn and he has income from bank fd interest.Should he file his return for the next year?And how much tax is cut from bank fd interest in this case since he is unemployed now..i mean what tax slab rate will he fall into since he is not salaried now if in previous year he was in 10% tax slab rate.

    1. Dear Arun, what’s the total taxable income in this case? Actually it’s 3M salary + PF encashment (if PF account is less than 5Y) + bank FD interest.

      Please tell the total of these 3.

      Thanks

      Ashal

  27. VIPIN SONJE says:

    Dear Ashal,
    As per you, we have to declare to employer interest income as other income & submit the TDS given back to avoid double taxation. My query is that,
    1) We have to submit income tax declaration to my employer by Dec’end of every year. By this time niether back gives me TDS certificate nor I am able to access the exact income of all my FD for the Financial year.How to address this.
    2) Second question is that , if I realise that I havent declared additional income & inturn paid less tax, how do I pay the same after 31st march?(physical process)

    Thanks in advance

    1. Dear Vipin, at the time of declaring your interest income to your employer on bank FDs, you may also declare the 10% Tax to be deducted by bank. Balance tax if any can be deducted by your employer from your salary.

      To pay the remaining tax on your FD interest, you can do so directly from your netbaking account. Please check the link in your netbanking named as – Pay your tax or Pay Online Tax or Pay Income Tax online (depending upon which bank you are dealing with).

      Thanks

      Ashal

  28. bemoneyaware says:

    Fixed Deposit(FD) is an investment product which allows you to invest a lump of money for a fixed time period and at a fixed rate of interest. It is quite popular form of investing in India especially in last few years when equity is not doing well and interest rate on Fixed Deposits offered are high. Some feature of FD are:
    Interest on Fixed Deposit is taxable as per your income slab whether TDS is deducted or not.
    Tax Deducted At Source or TDS: TDS is deducted every time the interest earned for the financial year in the bank is more than Rs 10,000 in a single branch, whether it is paid or not. If you have a Fixed Deposit which spans multiple years and you have opted for cumulative option. Then even though you don’t get interest bank will cut TDS and deposit it with central government if interest on that year is more than 10,000.Note: For Fixed deposit with NBFC TDS is cut when interest income that you are likely to earn for all your deposits is greater than Rs. 5,000/-
    Amount of TDS : The bank will deduct TDS at the flat rate of 10% if you have provided your PAN details.If PAN details have not been provided TDS shall be deducted at the rate of 20% .
    Proof of TDS, Form 16A. How to claim TDS: Once TDS is cut the only way to claim it back is by filing Income Tax return and asking for refund.

    Our post FAQ on Tax and Fixed Deposits talks about various such questions in detail.

  29. coolraj79 says:

    Dear Ashal,

    Is the tax limit of 10,000 per FD or total FDs held by a person? Suppose instead of opening one single FD of 3lakh, if I open 3 FDs of 1lakh each with the same bank, is the TDS still applicable as total interest on three would be more than 10,000 or is it per FD basis?

    Regards
    Rajesh

  30. coolraj79 says:

    Dear Ashal,

    I am new to investing….I read 10% TDS is applicable on FD interest….is this per FD on total FDs held by a person in a single branch…let’s say I open 3 FDs of 1lakh each at 9% interest instead of opening one single FD of 3lakhs, will it still be taxed at 10% of gross….in short is tax rule applicable on all FDs or per FD…

    Thanks for your help
    Regards
    Rajesh

    1. Dear rajesh, are you opening these 3 FDs in a single branch or in different branches?

      Please clarify.

      Thanks

      Ashal

      1. coolraj79 says:

        Hi Ashal,

        So it’s possible to open FDs in multiple branches of a bank? I read TDS is determined on branch level…in mulund mumbai icici itself has two physical branches, so can I open two fds with them…or do you imply branch should be in a different area from where you are living…

        Also, if the FD interest exceeds 10,000 and if it’s a different financial year…eg now in oct if I open I get interest on 3lakhs in next oct which spans two financial yrs, the interest of 27k won’t be taxable or would it be?

        Thanks again
        Rajesh

        1. Dear coolraj79, why do you want to avoid Tax on FDs? By the way, now a days in Core Banking system, the bank may match your data from all the branches all over India based upon some common details like PAN, Father’s name, DOB, Residential Address, Mobile No.

          I do have a case with me where based upon this CBS system, banks were able to identify FDs of more than 27 Crore Rs. (Yes you read it right 27 Crore Rs.). The matter was reported to Income Tax deptt. immediately & rest you know already what ‘ll happen in such cases. Tax + heavy penalty was imposed on the offender.

          Thanks

          Ashal

          1. coolraj79 says:

            Dear Ashal,

            It’s not that I want to avoid tax, but evern after paying taxes, a common man gets nothn…you know the situation of our country very well……if I invest my hard earned money why should I pay even 1 rupee if it’s going to land in some swiss bank account….

            Well keeping those debates aside I believe if there are rules to avoid tax why not take advantage of it…

            Coming back to the query…I just have one small query to end this…

            If I invest 5lakhs in Sept in a single FD and cumulative interest FD will mature in August next yr, does the tax still applicable or it’s not applicable since it involves two diff financial years.? I will also ask my bank but would be helpful if you can also help me here..

            Regards
            Rajesh

          2. Dear Coolraj, for the given query, the break up interest for 5L Rs. FD ‘ll be more than 10K Rs. in current Fy which is liable to TDS. Only Form 15G can save this TDS. for FY 2013-2014 till August, again the break up interest ‘ll be more than 10K Rs. hence liable to TDS.

            If I’m in your position, I w’d like to invest my money in Debt MFs for this 1Y period, where the tax liability ‘ll be very low (just plain 10.3% with out indexation). Which is far better way to earn money legally with out avoiding Tax.

            Thanks

            Ashal

  31. marora says:

    hi ashal,

    mine case is same.

    bank has deducted 10% TDS on interest . i am in 10% income slab.
    do i need to pay 0.3% extra tax on interest TDS during return filling.
    or it is not required ??/

    1. Dear Marora, yes that 0.3% tax liability is still open & before filing your ITR you should pay that amount. In case there is a refund in your over all calculation, then no need to pay this 0.3% tax.

      Thanks

      Ashal

  32. Karthik says:

    Dear Ashal,

    I have FDs and the rate deducted for TDS is only 10% as I have my PAN attached. Banks doesn’t deduct the additional 0.3% cess. I provided my employer an additional amount proportional to cover this part, so that the Tax is paid as TDS..

    Are you sure that bank will do the TDS based on our request of appropriate tax slab??

    Regards
    Karthik

    1. Dear karthik, what I meant was, if your FD interest is more than 10K in a FY & you have submitted PAN, the TDS rate ‘ll be 10.3%, else it ‘ll be 20.6%. If you are in higher tax slab & want to pay TDS at bank itself, you may request bank staff to deduct higher TDS.

      Thanks

      Ashal

      1. Karthik says:

        Yeah Ashal, I understand that above 10K interest earned attracts TDS.

        What I am conveying here is, Bank just deduct 10% only Income Tax only. They don’t deduct 3% Education Cess.
        TDS is not 10.3%. It is 10%. Even in the websites, only 10% is mentioned as TDS.

        For eg: If my interest earned is 20000, the TDS amount will be 2000 instead 2060. We have to pay Rs.60 as our Advance Tax.

        1. Dear Karthik, thanks for pointing my error. Yes TDS rate is 10% for PAN furnished cases & 20% for non PAN cases. So that 0.3 or 0.6% tax is still pending.

          Thanks

          Ashal

  33. ashal jauhari says:

    Dear Trishit, Here are answers for your queries.

    1. 10.3% Tax means – 10% basic tax rate & 2% edu. cess & 1% Higher Edu. cess on the tax amount.

    2. At the end of FY, the bank is liable to provide you form 16A for the declaration of tax deducted on your interest income. Now while filing your Income Tax return, you w’d have to put entries of income from salary & Interest in respective places & in case any Tax is due on you, you w’d have to pay it. For example – I assume you are in 20.6% tax slab, in this case if the bank deducts only 10.3% Tax, you are liable to pay balance 10.3% Tax.

    3. Please read the above point for your query of illegality of not declaring the interest income.

    Thanks

    Ashal

  34. ashal jauhari says:

    Dear Trishit, first of all please don’t feel ashamed for asking too many questions in another’s query. You are right that everybody ‘ll be benefited from this interaction.

    Yes you may provide TDS certificate issued by your bank to your employer while filing tax saving & income statements. The problem may arise – In case the bank has not deduct TDS by the time you are going to file form 192 to your employer, you have to put the possible TDS figure manually in that form.

    By the way, if your income is more than zero tax slab rate, you can’t file form 15 G to avoid TDS but by submitting PAN to your bank, you can limit your TDS to 10.3% slab.

    There is more to it, declaring your interest income to your employer in form 192 is not mandatory. It’s a voluntarily thing to get the benefit of Tax deduction by your employer on your behalf for your income other than salary.

    If you are not declaring this interest income to your employer, the onus is on you to pay correct tax on this income.

    Thanks

    Ashal

    1. Trishit Ray says:

      Dear Ashal,

      Thanks for your support.My income is taxable and I have given a copy of PAN card so that they deduct only 10.3%(is 0.3% for surcharge? I thought it to be 10%) over 10K of interest.As I already mentioned my employer does not take any documents while filing form no.192 and like you I am not sure if the bank will give TDS certificate in January I have these queries for you-

      1.Suppose I do not mention bank fd interest in form 192 as it is not mandatory should I mention it and produce TDS certificate at the time of filing form 16?Should I write income from bank interest or claim for the TDS?I got confused please elaborate.

      2.Suppose I do not mention the bank interest from fd in form 192 and in form 16 will it be illegal?I am already paying tax to govt. as my bank already cut TDS.Please confirm.

      I don’t want to do anything illegal but it would have been a lot easier if no return or a mention in return required on bank fd interest if TDS is already deducted.

      Regards,

      Trishit

    2. VIPIN SONJE says:

      Dear Ashal,
      As per you, we have to declare to employer interest income as other income & submit the TDS given back to avoid double taxation. My query is that,
      1) We have to submit income tax declaration to my employer by Dec’end of every year. By this time niether back gives me TDS certificate nor I am able to access the exact income of all my FD for the Financial year.How to address this.
      2) Second question is that , if I realise that I havent declared additional income & inturn paid less tax, how do I pay the same after 31st march?(physical process)

      Thanks in advance

  35. ashal jauhari says:

    Dear Trishit, As per Income Tax rules, Bank is liable to deduct TDS if the interest income in a FY exceeds the 10K Rs. limit. The rate of deduction ‘ll be 10.3% where PAN Card has been submitted & 20.6% where Pan card has not been submitted.

    So for your given case, the moment, Bank FD interest crosses the 10K limit, it’s advisable to ask your bank to deduct the due income tax along with this please do not forget to deposit your Pan Card is you fall in 10.3% tax slab.

    In this case, it’s advisable to get a TDS certificate from the bank & deposit the same to your employer to avoid double taxation.

    Thanks

    Ashal

    1. Trishit Ray says:

      Dear Ashal,

      I have to submit Form No. 192 to the employer in the month of January.There is a point for income from interest in that form.If I write the interest on fd there I have to pay the income tax which the employer deducts from my salary.Do you think if I submit TDS certificate from bank at the time of submitting Form No.192 will save double taxation?My employer does not take any document(I have asked) at the time of Form No.192 submission.

      Will the bank give me the TDS certificate in January?

      I feel a little embarrassed asking so much in another person’s thread but thought it might help Chaitayna and others.

      Regards,

      Trishit

    2. atul tikhe says:

      Hi Ashal,

      Thanks for providing good information on TDS. I have following question

      My interest on FD is more than 10K. So i have to submit form 15G to avoid TDS.

      1Q. How by just submitting form 15G the TDS will get avoided. e.g. if interest on FD is 12K then I have to pay 200Rs. ( considering 10% of TDS). But how person can avoid it by just submitting form 15G.

      2Q. I am share holder of the bank so bank told me in that case I don’t need to submit either form 15G or TDS. So does it mean that there will be no tax on extra 2K (12K – 10K = 2K). If yes then how is this possible.

      Can you please clarify the doubt.

      Regards,
      Upendra

      1. Dear Atul/Upendra, if your total taxable income is more than zero tax limit, you can not file Form 15G. So before answerring your any query, I want to know what’s your income?

        thanks

        Ashal

        1. atul tikhe says:

          Dear Ashal,

          I come under 20% tax slice. So do you say that form 15G is not valid if person total income come in 20% tax slice & he has to pay the tax on extra income (in this case on Rs. 2000).

          Can you please put some light on my second query.

          Regards,
          Atul

          1. Dear Atul, the zero tax limit is 2L Rs. so the moment, your total taxable income is more than 2L Rs. you can not file form 15G.

            I’m unable to understand the 2nd query. In all probability I assume you are referring to a Co-operative bank. Yes interest paid to co-operative bank’s share holders is not subject to TDS.

            thanks

            Ashal

          2. atul tikhe says:

            Dear Ashal,

            Thanks for prompt response.
            So in my case I have to pay tax on extra earning (on 2000Rs).

            but for second query you say for share holder, TDS is not applicable. How this is possible.

            I am share holder of Co-operative bank & my FD interest goes beyond 10K (15K) & my income tax slab is 20%. Then in my case do I need to pay tax on extra 5K earned or it will get waived as I am share holder of that bank.
            I think I have to pay tax on extra 5K but not sure.
            Can you please clarify my doubt.

            Thanks,
            Upendra

          3. Dear Atul, can you start a new discussion for this query. the reason is you are musunderstanding the non TDS limit of 10K in FD interest with zero tax liability. whereas the truth is, Even if you are earning 100 Rs. as FD interest it’s taxable.

            TDS liability is different than your actual Tax liability.

            Please try to understand here itself or start a fresh discussion.

            thanks

            Ashal

  36. ashal jauhari says:

    Dear Chaitanya, Please do note the Interest income be it from saving account or FD or RD, is taxable as per the slab rate. In case, the person in question, has forgot to show this interest income in his return, he may do so now by filing a revised return. But before filing the revised return, he w’d have to pay his income tax due on this bank FD interest with the penalty for late payment of income tax. From next year onwards, the person in question may declare this interest income to his employer & his employer & the Tax on interest income can be deducted at from the salary itself.

    Till the time, FDs are under his name, the interest income ‘ll be added to his income from all other sources & ‘ll be taxed as per his tax slab rate.

    How about not investing in bank FDs or investing in other family members’ names.

    Thanks

    Ashal

    1. Trishit Ray says:

      Hello Ashal,

      You stated “From next year onwards, the person in question may declare this interest income to his employer & his employer & the Tax on interest income can be deducted at from the salary itself.”

      If one shows the bank interest to his employer and tax is deducted will the bank still deduct the TDS above interest of 10K ? In that case what that person should do to avoid the double taxation?

      Regards,

      Trishit

    2. Lakshmipathy G says:

      hello Ashal,

      i am a naive jago user,I need some suggestion for this question
      “How about not investing in bank FDs or investing in other family members’ names”.

      What do you think is the best alternatives for FD (Debt)? Are there any other Debt instruments which can give a better liquidity, reasonable returns and with out worrying about the Tax implications? Is there anything like that?

      And also For my parents, Senior Citizens who are not employed and retired from business who has a reasonable amount in FD for their retirement earning. Will you suggest them to move from FDs?

      1. Dear Lakshmipathy, yes you can use other family member’s name to invest in FD. Preferably Sr. Citizen parents.

        From taxation point of view, it’s a bit favorable.

        Debt funds can be an alternative but being market linked product, there may be some in between volatility in your debt fund.

        Thanks

        Ashal

        1. Lakshmipathy G says:

          Thanks Ashal.

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