Doubt regarding 15g with banks

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2011 Well today i went to my bank to close one of my mothers fd.

The return on the fd was going in negative as Tds on all other fds held by mom was going to get deducted from it.

My mother will have income more than the basic exemption limit (approximately 2.7l this financial year).As she has already transferred 70k to ppf and might be investing 10-20k in elss before the year ends.She might be filing zero return or hardly it wont cross 1k amount.

Now since the tds deduction was going to be about 1.8k the bank staff told me to file the 15g form.I know one shouldn't fill this form if his/her income crosses basic limit or even though one invest in 80c and dont have any taxes to pay.But since tax would have been deducted and than i should have to cry for refunds at every nook and corner i filled the form.

Hence no tds was deducted.

Now while filing the return if says her income remains at 2lakh ill pay 1k tax.

I wanted to know whether my practice is correct or not.Or whether i have asked for trouble.If feel the i did the right thing as i am not doing any tax robbery and one knows how is the refund system of it department.

From next yes onwards i am planning to shift my fds such that TDS doesnt apply on it to other branches.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 March 2011 As you have taken a chance, wait and have patience.
Pay the tax and forget what wrongs you have done.
The corrective step has already been taken by you now, so being the first chance you may be forgiven by the department looking towards the amount involved.

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