Form-15g/tds

TDS 391 views 1 replies

Dear All,

 
We all know that Bank deducts TDS on interest on FDs & if we give Form-15G then it will not be deducted.
 
Now, as per my knowledge, Form-15G is given when my Annual Income will be below taxable limit. Hence, if I give Form-15G to the Bank for not deducting TDS on interest on my FD & subsequently, my income exceeds the taxable limit then I may be put into trouble by the I.T. Department.
 
However, the Branch Manager is saying that, if you are giving Form-15G then you are directing/requesting the Bank not to deduct TDS on interest on FDs and subsequently if my income exceeds the taxable limit, then I will pay the resulting TAX by myself. If this is the situation, then ofcourse everyone would like to give Form-15G so that TDS won't be deducted as we all know, once TDS got deducted, how cumbersome it is to get it back.
 
Is the BM's opinion correct? If not, is there any way out to save TDS.
I seek your valuable opinion in this context.
 
Regards,
Milan Agrawal.
Replies (1)

Yes, the statement of BM is correct in terms of circumstance mentioned by you.

Not only you need to pay self assessment tax if you see your income exceeding exemption limit, you expose yourself for violation of IT Act for giving false declaration under section 197.

But again, a plea can be taken that 15G/H is submitted on an 'estimated' basis.


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