There is No TDS on the Saving Bank Account Interest, but the TDS is to be deducted by the Bank or others when the Interest is paid above threshold limit of Rs 10000 in case of Interest paid by banks & Rs 5000 for others, TDS U/s 194A is to be done @ 10%
I am also interested to know the same.
1) I would like to know what is the default TDS for interest earned on FD ? ( is it 10%)
2) If my salary is 8.5 Lac and additionally i earn income from interest then do i need to submit form 15 G ?
Regards
Nitin
Form 15G and Form 15H are forms which can help a person avoid TDS incase one does not have to pay income tax at the end of the year. Form 15H is for senior citizens and form 15G is for others. In this article we will see how a person can avoid payment of TDS by submitting these forms 15G and 15H
Suppose your Father has invested Rs 20 lacs in a Bank FD . He gets interest @ 8% , that’s Rs 1.6 lacs per year . Now ideally he is not supposed to pay any tax on this because this income is less than the limit . But bank cuts the TDS @ 10% and pays Rs 16,000 to the govt as TAX (Note that TDS is cut only when interest income is more than 10,000) . To get back this 16,000 back , your father will have to file tax return and then wait for the tax refund to come back
But in your case as your income is above exemption limit you need to add the Interest Income to Salary Income, Calculate tax and pay it. But if any tax is deducted while paying interest the same can be claimed while computing the tax.
Yes even if the person falls in 30% bracket TDS done is @ 10% balance need to be paid while computing the Tax on Income.
| Originally posted by : YOGESH | ||
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Yes even if the person falls in 30% bracket TDS done is @ 10% balance need to be paid while computing the Tax on Income. |
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So if I fall under 30% bracket and earn interest of Rs. 16,000 (on FD on 20 L). Bank will deduct TDS of 10% i.e Rs. 1,600. So if i mention the interest as income from other sources while filing return "will government again consider remaining Rs. 14,400 ( 16,000 - 1,600) as part on my income and will decuct 30% tax on that amount ??
This is little confusing ?
"But in your case as your income is above exemption limit you need to add the Interest Income to Salary Income, Calculate tax and pay it. But if any tax is deducted while paying interest the same can be claimed while computing the tax."
with reference to the para above:
So when interest income is added in salary income tax has to be paid according to the tax salb in which the person falls (say 30%) and not 10% ??? am i right
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