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Interest income (from fd)- rs2lak limit or rs3l ?

Balaji Subbu (SAP FICO) (220 Points)

22 April 2017

Dear Professional Friends

If one Fixed Deposit Holder earns INTEREST INCOME (from FD) for 2017-2018 as Rs2Lakhs, and this Rs2L interest income will attract any INCOME TAX?

(1) if so %?

(2) Like form15G, shall we give any other FORMS to aviod the Income TAX for the INTEREST INCOME?

(3) Please do not inform about FORM15G procedures, that I aware

Fixed Deposit Holder is an individual Male, NO JOB age is 52

He will purchase a house during June 2018, so he is having all his life saving in the form of FD in the Nationalized Bank in India

Adv thanks

regards

Balaji Subbu

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15 Replies

(Guest)

bank will deduct tds on this amount @ 10%

1 Like

adarsh (ca final) (34 Points)
Replied 22 April 2017

no income tax will be payable
but bank will deduct tds @ 10% of interst paid if pan is given & @ 20% if no pan is given.

1 Like

CA CMA Sagar Jaiswal (Finance professional) (665 Points)
Replied 22 April 2017

U have to show interest income in other source. If assesse has income from any other source then add interest income and calculate tax liability. If no other income ,than fill return and show interest income .As your income is within the limit. So no tax liability

Balaji Subbu (SAP FICO) (220 Points)
Replied 23 April 2017

adarsh, my question is HOW to aviod tds10% that is deducted by bank, but you have not answered that part

Balaji Subbu (SAP FICO) (220 Points)
Replied 23 April 2017

sagar, I have no other income, but interest INCOME from FD, for e.g Rs3Laksh- I repeat INTEREST INCOME from FD. Under this case there is NO TDS by BANK? or Bank will deduct TDS for this INTEREST INCOME? IfBANK deduct HOW FD holder can avoid TDS?

(Guest)

if interest more than 250000/- bank will deduct tds

1 Like

adarsh (ca final) (34 Points)
Replied 23 April 2017

if interest paid is more than rs 10,000 bank will deduct tds.
if u dont want tds to be deducted as total income is below taxalbe limit u can give form 15g to bank and bank will not deduct tds.

vijaya bhaskar reddy polu (Student CA IPC / IPCC) (79 Points)
Replied 24 April 2017

Dear Balaji Subbu
You can not avoid tax by submitting forms, the only thing from 15G can do is it will stop ur bank from deducting TDS. Anyway the interest income earned is taxable under income from other sources.But in ur case it is not taxable as it is below BEL so if u submit ur 15G bank will not deduct any amount.