I have certain number of FDs in SBI. In beginning of financial year I had submitted form 15 G to bank. If I understand it right, even if the interest on FDs go beyond 10,000 Bank will NOT deduct TDS since I have submitted form 15 G. By submitting form 15 G , I am promising to my bank that my income will not come under taxable slab which is my assumption at beginning of financial year.
What if at the end of financial year, my total income become eligible for taxation ?
Bank will assume that since my income is not in taxable range, it will not deduct TDS. If my income becomes eligible for taxation, will I be penalized for making a false declaration with bank by submitting form 15 G ?
Thanks in Advance. Please Respond.
CAclubindia
