Tds on fd interest

TDS 239 views 7 replies

sudhir ch. saha

Service

105 Points Joined May 2011

Sir,

This year again SBI already deducted a lum sum amount for itax from my int . of Fd under Sr. Citizen Saving Scheme . On query it is informed to me that more lum sum amt are due to be deducted . I do not come under itax & used to submit 15 H Form . My income exceeds 3 lacs but maximum deduction under 80C saves me from itax. I use to submit return every year. SBI advised me to submit return for refund and also added that they have nothing to do and in the new system IT dept. deducts itax from the bank A/C directly. My question is here why dedn. is not made from interest of other FD A/C . I would like to know whether it is fact , if not , what is the remedy to get rid of such wrong TDS . Despite of submission of 15 H it is every year prctice of Banks in some cases . Where I can report against this wrong TDS for necessary action.

With regard ,

Sudhir Saha

Replies (7)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

209094 Points Joined July 2016

Bank is correct to deduct TDS when your total interest paid & accrued during any FY exceeds 3 lakhs rupees.

As per section 197(1B) of I T Act, 1961.............

[(1B) The provisions of this section shall not apply where the amount of any income of the nature referred to in sub-section (1) or sub-section (1A), as the case may be, or the aggregate of the amounts of such incomes credited or paid or likely to be credited or paid during the previous year in which such income is to be included exceeds the maximum amount which is not chargeable to income-tax.]

Here, for deduction of TDS, any deduction under chapter VI-A are not accounted.

You can divide your FDs in different banks...........

sudhir ch. saha

Service

105 Points Joined May 2011

Originally posted by : Dhirajlal Rambhia

Bank is correct to deduct TDS when your total interest paid & accrued during any FY exceeds 3 lakhs rupees.

As per section 197(1B) of I T Act, 1961.............

[(1B) The provisions of this section shall not apply where the amount of any income of the nature referred to in sub-section (1) or sub-section (1A), as the case may be, or the aggregate of the amounts of such incomes credited or paid or likely to be credited or paid during the previous year in which such income is to be included exceeds the maximum amount which is not chargeable to income-tax.]

Here, for deduction of TDS, any deduction under chapter VI-A are not accounted.

You can divide your FDs in different banks...........

Dt: 27-01-2018

Sir,

On your above remarks I want to clear my total earning / income below :

My total income consists of pension & Bank interest . Only bank int. is not 3 lacs. My total income after deduction under 80C stands less than 3 lack . Most of the years after submission of return , advance TDS is received back . My question is why advance itax is deducted evenafter submission of Form 15H . If bank erroneously deduct itax , where it can be reported .

With regard ,

Sudhir Saha

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

209094 Points Joined July 2016

What is the annual interest amount over SCSS along with any FD with the Bank? (For the Financial Year projected till March)

sudhir ch. saha

Service

105 Points Joined May 2011

Sir,

My total Intertest amt. on bank FD / MIS upto March , 2018 will be less than Rs.1.4 Lacs and with my pension it will be Rs.3.6 Lacs . After deduction of 80C , total my Taxable income is Rs. 2.2 appx.

With regard,

Sudhir Saha