a senior citizen, 67years is expected to get rs 6lacs 30thousand as interest in financial year 2015

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  1. h k lal

    h k lal New Member

    1. A senior citizen age 67 years is expected to get interest amount rs 6, 70, 000 in FY 2015-2016 & has submitted form 15h & details about savings u/s 80c for 1, 50, 000 in the month of may2015.
    2. Can there be any TDS deduction by the bank, on the interest amount?
    Incase, the bank is bound to deduct the TDS, under which section of IT act, it is essential for the bank to do so?
    3. Is it necessary for the bank to inform the sr. Citizen customer about the TDS deduction before any such deduction, so that, steps for savings for minimising the income tax amount is taken? Kindly reply
    H K Lal
  2. As per the latest directive from Income-tax Dept.,interest income for persons between the age of 60-80 years will attract tax in excess of Rs.300000/-i.e.(RS.670000-Rs.300000=Rs.370000),in your case.Bank in your case will deduct [email protected]%.Bank will intimate you about deduction & will give you T.D.S. certificate.You may file I.T. return & claim Rs.15000-i.e.10% of savings of Rs.150000/-.
  3. Karan Batra

    Karan Batra Well-Known Member

    1. TDS on Interest on FD is liable to be deducted under Section 194A
    2. The Bank will not inform you before deducting the TDS. However, after the TDS has been deducted - the bank will issue you a Form 16A mentioning the TDS which has been deducted
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