Savings account interest is exempt from TDS

When do I have to file Form 15H to banks for not deducting TDS on fixed deposits

-Ruchi Gupta

It is advisable to submit the applicable form to the bank branch at the beginning of the assessment year in case of existing deposits or at the time of opening a fixed deposit account. You should also mention your PAN details, without which it would be invalid and TDS at the applicable rate or 20%, whichever is higher, will be deducted. This form should be submitted to all the branches where you have the deposit and for each new deposit that is placed with the bank. If you do not submit form 15G or 15H, as applicable, the bank may deduct the TDS and issue TDS certificate at the end of year. You may have to file the income tax returns and claim the refund from the income tax department.

Is the interest earned from savings account taxable?

-Ramesh Talwar

No, the interest earned on savings account is exempted from TDS under Section 194 A of Income Tax Act. However, interest income from fixed deposit is liable for TDS if the interest income is more than Rs 10,000 in a year. In your case, since the interest earned on fixed deposits is Rs 20,000 every year, the bank will deduct TDS unless you have submitted form 15G or 15H. As per IT rules, if the fixed deposit holder is a resident individual, for an interest payment of up to Rs 10 lakh, TDS will be deducted at the rate of 10% along with an education cess of 3% (3% on 10), which takes the total deduction to 10.3%.

How do I transfer a PPF account from one branch to the other of SBI?

-Anirudha Sengupta

Any PPF account is transferable across any branch of the bank or to the head post office free of charge and, thus, you will not lose any amount on account of this transfer.

... contd.

Please read our terms of use before posting comments
TERMS OF USE: The views expressed in comments published on indianexpress.com are those of the comment writer's alone. They do not represent the views or opinions of The Indian Express Group or its staff. Comments are automatically posted live; however, indianexpress.com reserves the right to take it down at any time. We also reserve the right not to publish comments that are abusive, obscene, inflammatory, derogatory or defamatory.