Interest on fd

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Hello ... Can any one please suggest. A lady is having 2 fds in two different banks of worth rs 2 lacs each. Still nothing is being reflected in form 26as that means no tds is being deducted on interest. How is it possible??? as per 194A There must be tds as interest amt will be 2000009%=18000 for the whole year which is more than prescribed limit of rs 10000 Pls suggest wat can be the reasons. thanks
Replies (12)

There can be two cases:-

One she has not given correct PAN to the bank.

Second she has opened FDRs in different branches of same bank so that interest in each branch is not more than Rs. 10,000/-

She has given the declaration in form 15G. And nothing is being reflected in 26as.. What should be the possible actions for filing her ITR .she is a house wife .which ITR should be filed and mere that interest is her income to be shown in ITR??
Question have two diffrent banks hance its have no liability on bank to deduct tds......and may be condition which write mr. Garvit bharti.
Obtain interest certificate from bank.

if she has provided form 15G, it means that bank will not deduct any tax from interest component, hence bank will not deduct tax and will not file TDS return and you will not find the same in form 26AS.

Read section 194A with section 206AA of income tax act 1961

 

Regards,

Sayli Jain

sayli12345 @ gmail.com

Which itr is the best for income from interest on fd only..??
Show gruh udyog income u/s 44AD along with interest income. Showed accrued Interest on FD. And offer for Tax. File ItR- 4S. IF TDS not deducted then no problem from your side. It is bank responsibility to deduct tds if any. Confirm for any form 16A from the client.

As your client doesnt has any other income so she filed form 15G asking bank to not deduct tds so bank has not deducted and thus reflecting in 26as.

You just file ITR 1 at the time of maturity of Fixed Deposits or renewal as the case may be showing interest income as 'Income from other sources'.

the limit u have to apply to each bank with its branches

Income Tax Return in Form ITR 1 shall have to be filed in this case. However, if the lady is having only this much income and no tds been deducted, ITR need not be filed compulsorily.

Since she has given 15G declaration bank had not deducted TDS on interest but even if on 26AS it should reflect this fact that she has given declatation in 15G.

File ITR-1

 

 

Thanks to all....for their suggestions..


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