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Avoiding tds with 15g: interest income

Prakt Das (SR) (67 Points)

29 August 2012

Consider the following situation:

I am less than 60 years old. I have an annual income of 2.5 lacs (Salary 1.5 lac/year + Interest from FD 1 lac/year) during the FY 2012-2013. I pay 1 lac for PPF. So my taxable income is nil for AY 2013-2014. But my overall income is above the 2 lac slab. Am I eligible for form 15G submission during the FY 2012-2013.

In other words, will the interest income from the FD (for which I am planning to submit the 15G) be added to the total income while considering eligibility for 15G?

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5 Replies

Pooja (service) (26 Points)
Replied 30 August 2012

You are eligible to submit form 15G.

A person should fulfill below two conditions to be eligible to submit form 15G for interest income:

1. The tax on his estimated total income should be nil.

2. The aggregate interest incomes should not exceeds the maximum amount which is not chargeable to income-tax. i.e aggreate interest should not exceed 180000 for men and 190000 for women.

1 Like

Arif Ali (Apt Co Advisory) (1230 Points)
Replied 13 September 2012

yes you are eligible to submit form 15G

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Prakt Das (SR) (67 Points)
Replied 13 September 2012

Originally posted by : Pooja
	You are eligible to submit form 15G. A person should fulfill below two conditions to be eligible to submit form 15G for interest income: 1. The tax on his estimated total income should be nil. 2. The aggregate interest incomes should not exceeds the maximum amount which is not chargeable to income-tax. i.e aggreate interest should not exceed 180000 for men and 190000 for women.

I am quite confused here! The statement "aggregate from interest incomes" means sum of all interest incomes alone OR sum of interest income + other incomes (like salary). Other sources give conflicting answers.

https://www.charteredclub.com/tds-on-fixed-deposits/

Arif Ali (Apt Co Advisory) (1230 Points)
Replied 13 September 2012

why are u getting confusion. u can submit form 15G. Pooja has given the clear answer.

There is condition that ur total income should not be exceed Rs.1.8 lac (including that interest and after deduction of ur PPF investment)

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Prakt Das (SR) (67 Points)
Replied 13 September 2012

Thank you! I will submit 15G. I was confused by some people who told me that the total income (before deduction of savings) should be less than the basic exemption slab.