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I am a Sr Citizen & the int on FD is less than 10K for the yr.Can the bk deduct TDS as I hav no PAN.
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Fixed Deposits
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Asked by Subhabrata Basu -
1 year ago
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Best Answer:
Sir, first of all you must get your PAN card it is mandatory. The government is making PAN mandatory for all transactions, to ensure that more people come under the TDS net. According to Union budget 2009-10, a person whose tax is being deducted at source should furnish his PAN to the deductor. If he fails to do so, he will have to pay a flat 20% as penalty.
On FD if the total interest amount is up to Rs.10000 is not taxable. If the total amount exceeds Rs.10000, in a financial year 10% will be deducted as the tax. Now a days as and when a bank pays an interest on the fixed deposits, it checks whether the account is exempted from TDS. If it is not exempted, then TDS is deducted. You should also remember that TDS is deducted even on interest accrued (but not yet paid) at the end of the financial year i.e. 31st March every year.
You are a senior citizen, if your income is below taxable income then you can submit Form 15H to the bank branches to fully exempt from the tax. Note that if you are not submitting the form, the tax will be deducted and you have get it through filing the tax returns. That normally takes another one year to refund the amount you paid as the tax. A fresh Form 15H needs to be furnished for each deposit that is placed with the Bank.
1 year ago - By Mintu
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