Tax on interest

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Deena Ouseph (Querist)
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23 August 2018 A senior citizen wants to make a deposit of 10 lakhs at an interset of 9.25 per annum at ESAF Bank.What’s the limit of interest for which tax will be deducted ?And which form to be filed for non deducting the tax ??And is there any consequences on filing such form for a normal person??

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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23 August 2018 No tax will be deducted on amount up to Rs.50000 received/accrued by Senior citizens by way of Interest on FD

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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23 August 2018 If you have only interest income you can file ITR -1
Normally TDS will be deducted if TDS Amount exceed 10000/- but bank have option to deduct for lesser amount also.
IF income from all heads including interest income below taxable limit give form 15H declaration to not deduct TDS.

Ay 2019-20.you can claim 50000/- Deduction for al type of interest u/s 80TTB.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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23 August 2018 If the interest income is above Rs.50,000 and the total income of the senior citizen is less than basic exemption limit, one has to file the form 15H to the bank for non deduction of TDS

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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23 August 2018 Regarding your query about consequences of filing such forms, please note that the tax laws require assessees to self declare and self comply. Whatever information you report in 15H are taken as correct and in case of any false statement in 15H, actions u/s 277 of IT Act may be taken

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