Income tax on interest on FD

Hi,

I am having F.D.of around 30,00,000 in different branches of bank. The interest earned from these FDs will be around 2,80,000 Rs anually. I dont have any other source of Income, can you please tell me how much tax i need to pay? As per the income tax rule i have to pay 10% on 1,00,000 Rs(as 180,000 are income tax free), but if bank will deduct TDS @10.3 % on whole interest then it will be around 28,000 Rs, which is around 18000 Rs more than the nominal tax !! Can you please clearify? How much i have to pay and can i get refund of this extra amount from IT dept?

asked Nov 21 '11 at 21:37 by ramson gupta 1223


Hi

.To avoid TDS deduction from the bank 15G/15 H need to be given for every financial year. You can give this 15g/15H only for the fixed deposits giving 18,000 rupees interest. Remaining 10,000 interest(Those fixed deposit dont give 15g/15H) you can give ur pan card and let them deduct the tax. if you are ready for investing the 1,00,000 in tax savings u can give 15 g for all the deposits also.

I hope am clear.

answered Nov 21 '11 at 23:31 by vignesh 94671223

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As suggested by @vignesh, you should submit form 15G or 15H to avoid extra TDS deduction by banks on interest payment. If you are a senior citizen (age more than 60 years) then you need to submit form 15H, else 15G.

If you unable to submit this form to bank, then you can claim this extra tax deduction while income tax return filing and it will be refunded back to your account.

answered Nov 23 '11 at 17:13 by pankaj 5.2k320

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Asked: Nov 21 '11 at 21:37

Seen: 1,600 times

Last updated: Nov 23 '11 at 17:13