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Tds on fixed deposits.

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IFTEKHAR AHMED (Querist)
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25 April 2013 On maturity of deposit my bank has deducted an amount fro TDS even though i have submitted Form No. 15G.
upon enquiring, the banker is telling that only upto certain interest amount earned on Fixed deposit say Rs.1,00,000/- TDS is not made, but on exceeding such amount, bank deducts tax on the interest amount.
kindly give guidance on this issue as i am aware that If the Payee submits a declaration in Form 15G/ 15H in duplicate stating the following, then TDS need not be deducted:
a)That his total income is less than basic exemption limit of Rs.2 lac.
b)Even if his total income exceeds basic exemption limit of Rs.2 lac but tax payable after deducting rebates u/s 80C is nil.
Thanx

CA Krunal

CA Krunal (Expert)
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25 April 2013 Your understanding is correct.

IFTEKHAR AHMED

IFTEKHAR AHMED (Querist)
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26 April 2013 thank you sir for your valuable guidance.

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