Fxd dep.35lkhs. provided form 15g. tds exmptn. upto....?

A depositor deposited 35 laks in a Nationalised Bank. The depositor has no other income.

The interest amount expected is around 3.5 lakhs.

The depositor has savings of 1 lakh. 

He does not want the bank to deduct TDS upto 3 lakhs.

Is the depositor right in insiisting sO....?

Please clarify (with legal provisions)

Replies (1)

The concept of no TDS deduction is covered by sec 197 and 197A of the act. Any payee other than a company or a firm can give a declaration to the effect that his total income in which the income in question is assessable to nil tax, then the payer will not deduct tax. The declaration referred to here shall not be entertained where the aggregate amount of income liable for TDS exceeds the basic exemption limit. ( sec 197A(1B)

Therefore, the assessee here cannot escape the deduction of tax as it exceeds basic exemption limit.

 

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