Interest income (from fd)- rs2lak limit or rs3l ?

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Balaji Subbu

SAP FICO

220 Points Joined March 2008

Dear Professional Friends

If one Fixed Deposit Holder earns INTEREST INCOME (from FD) for 2017-2018 as Rs2Lakhs, and this Rs2L interest income will attract any INCOME TAX?

(1) if so %?

(2) Like form15G, shall we give any other FORMS to aviod the Income TAX for the INTEREST INCOME?

(3) Please do not inform about FORM15G procedures, that I aware

Fixed Deposit Holder is an individual Male, NO JOB age is 52

He will purchase a house during June 2018, so he is having all his life saving in the form of FD in the Nationalized Bank in India

Adv thanks

regards

Balaji Subbu

Replies (15)

Guest

bank will deduct tds on this amount @ 10%

adarsh

ca final

34 Points Joined February 2012

no income tax will be payable
but bank will deduct tds @ 10% of interst paid if pan is given & @ 20% if no pan is given.

CA CMA Sagar Jaiswal

Finance professional

775 Points Joined June 2015

U have to show interest income in other source. If assesse has income from any other source then add interest income and calculate tax liability. If no other income ,than fill return and show interest income .As your income is within the limit. So no tax liability

Balaji Subbu

SAP FICO

220 Points Joined March 2008

adarsh, my question is HOW to aviod tds10% that is deducted by bank, but you have not answered that part

Balaji Subbu

SAP FICO

220 Points Joined March 2008

sagar, I have no other income, but interest INCOME from FD, for e.g Rs3Laksh- I repeat INTEREST INCOME from FD. Under this case there is NO TDS by BANK? or Bank will deduct TDS for this INTEREST INCOME? IfBANK deduct HOW FD holder can avoid TDS?

Guest

if interest more than 250000/- bank will deduct tds

adarsh

ca final

34 Points Joined February 2012

if interest paid is more than rs 10,000 bank will deduct tds.
if u dont want tds to be deducted as total income is below taxalbe limit u can give form 15g to bank and bank will not deduct tds.

vijaya bhaskar reddy polu

Student CA IPC / IPCC

79 Points Joined October 2012

Dear Balaji Subbu
You can not avoid tax by submitting forms, the only thing from 15G can do is it will stop ur bank from deducting TDS. Anyway the interest income earned is taxable under income from other sources.But in ur case it is not taxable as it is below BEL so if u submit ur 15G bank will not deduct any amount.