DEDUCTION OF TAX FROM INTEREST INCOME OF SENIOR CITIZENS

[Mahendra Kumar Gupta]

The Income Tax rules now says that TDS should not be deducted from the senior citizens on the interest income from the banks but banks are still deducting it if "Form 15G" etc. is not submitted. Three such banks are ICICI, SBI and Syndicate.  Have not checked with other banks. They say that they have not received any instructions from their head office.

Please inform the policy of other banks and the follow-up to be made so that the banks implement the govt. decision on this.

Request an expert advice from CAs on this blog in the larger public (Sr. Citizens) interest.

[Shashi Kapoor]

Source/aunthenticity of this news needs to be indicated, to enable us to take up with the controlleres respective bankes.

Kapoor

9711499782

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Date: Tue, 13 Aug 2013 08:32:31 +0530
Subject: [Dwarka Forum] DEDUCTION OF TAX FROM INTEREST INCOME OF SENIOR CITIZENS
From: mkgup...@gmail.com
To: Dwarka-r...@googlegroups.com

The Income Tax rules now says that TDS should not be deducted from the senior citizens on the interest income from the banks but banks are still deducting it if "Form 15G" etc. is not submitted. Three such banks are ICICI, SBI and Syndicate.  Have not checked with other banks. They say that they have not received any instructions from their head office.

Please inform the policy of other banks and the follow-up to be made so that the banks implement the govt. decision on this.

Request an expert advice from CAs on this blog in the larger public (Sr. Citizens) interest.

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[gotoyogi]

Sir SBP (state bank of patiala) is also deducting sir.

Sent from Samsung Mobile

-------- Original message --------
From: Mahendra Kumar Gupta <mkgup...@gmail.com>
Date: 13/08/2013 08:32 (GMT+05:30)
To: dwarka-residents <Dwarka-r...@googlegroups.com>
Subject: [Dwarka Forum] DEDUCTION OF TAX FROM INTEREST INCOME OF SENIOR CITIZENS

[Prem Bihari Mishra]

The concerned officer in  SBI Sector-23 told me that TDS on FDR  interest will be deducted even after submission of 15G form, if I file I.Tax return. At the same time AXIS bank Sec-5 told me it will not. Can anybody give real picture plz.

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 ----P.B. Mishra

[Major Chandrashekhar Kaushik]

There is income tax on interest beyond a limit and thus Form 15 G is only completion of formality of bligation of taxpayer.

Please quote govt instructions/reference.

Thanks

On Tue, Aug 13, 2013 at 8:32 AM, Mahendra Kumar Gupta <mkgup...@gmail.com> wrote:

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[JNGupta]

TDS is Deducted if Interest on all the FDRs in a Bank Exceeds Rs.10,000 in a Year. Sr. & very sr. Citizen have to submit Form 15H while those below 60 Yrs. have to Submit Form 15G subject to the following Eligibility.

Eligibility :

========

Sr. (>60 to 80 Yrs.) & very Sr. (>80 Yrs.) Citizen can Submit Form 15H even if their total annual income exceeds taxable limits. They have to Pay taxes (If Due) while filing IT Return.

Person of age < 60 Yrs.(Not Sr. Citizen) can't submitt Form 15G if his total annual Income exceeds taxable limits.

JNGupta

[JAI PRAKASH Tiwaree]

15G is a declaration that declares that person has no taxable income from any source 

[Prem Bihari Mishra]

1.   SBP is subsidiary of SBI. Hence same rule.

2.   Malik Ji, There is a limit of 10K on saving bank a/c interest. My confusion was about interest on FD.

 ----P.B. Mishra

[Mahendra Kumar Gupta]

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You are here: Home / Exemptions/Deductions/Rebates / Senior Citizens do not have to pay advance tax

Senior Citizens do not have to pay advance tax

June 7, 2013 By Alok Patnia

Senior Citizens do not have to pay advance tax if they have no Business Income:-

This article is for the senior citizens who are facing confusions about whether they are liable to pay Advance Taxes. Some people might have created confusions into your mind regarding the fact that whether you are liable to pay your taxes in advance or not. This article  would try to  describe the Tax Rule regarding this in simple terms.

Section 207 of the Income Tax Act captures that Advance Tax does not need to be paid if an Individual Resident Indian-

• does not have any income chargeable under the head “profits and gains of business and profession; and
• is of the age of sixty years or more at any time during the previous year.

The above two points are implying that if a senior citizen does not have any business income or any professional income in a financial year then he does not need to pay Advance Taxes. It has been noticed that there are plenty numbers of senior citizens in India who earn their incomes through interest of Fixed Deposits, Rental incomes of house properties, pension incomes etc.

The said incomes can be classified by your Income Tax advisor under the head Income from Other Sources, Income from House Property and Income under the head salary respectively. Therefore, in these three cases a senior citizen does not earn any income from his business or profession. These people are out of the ambit of paying Advance Tax. Please note that this rule does not apply to a Non-resident.

The duty of a Senior Citizen who is not liable to pay Advance Tax:-

Senior Citizens will pay their Taxes due at anytime before filing their Income Tax Return on Self-Assessment basis only if they have such incomes on which tax payable is higher than the TDS deducted from interest income on Fixed Deposits, Rents, etc. A senior citizen is liable to pay taxes when his income exceeds Rs.2,50,000 for the financial year 2012-13. An individual need to file his Income Tax Return upto 31^st July, 2013 for the financial year 2012-13.

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On Tue, Aug 13, 2013 at 6:01 PM, Major Chandrashekhar Kaushik <majork...@gmail.com> wrote:

[Mahendra Kumar Gupta]

3.7 No Advance tax payable by senior citizens u/s.207:

This section provides for payment of Advance Tax in instalments. It is now provided, w.e.f. 1-4-2012, that a senior citizen who has no income from business or profession will not be required to pay any Advance Tax.

[Prem Bihari Mishra]

Sir,

The question is that earlier  no TDS was deducted by the bank on FDR interest  if Form 15H or G (as the case may be) was furnished to the bank. SBI says that TDS will be deducted now if you are filing ITR, irrespective of submission of these form(s) i.e.their is no use of form 15H (or G) if the account holder is having  taxable income whereas the AXIS bank says otherwise.

 ----P.B. Mishra

[Mahendra Kumar Gupta]

Let us take up this issue with Bank Regulatory Authority, RBI and Income Tax Deptt. etc. for a clarification. I spoke to Mr. Yadav of Sr. Citizen Assn. two days ago and he told that he will discuss this matter in Association meeting  which may be already been held one or two days ago.  We can also take advice from some CA and/or Banker.

[kk.gu...@yahoo.com]

Let us take up this issue

Sent from BlackBerry® on Airtel

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From: Mahendra Kumar Gupta <mkgup...@gmail.com>

Sender: dwarka-r...@googlegroups.com

Date: Thu, 15 Aug 2013 20:22:23 +0530

To: dwarka-residents<dwarka-r...@googlegroups.com>

ReplyTo: dwarka-r...@googlegroups.com

Subject: Re: [Dwarka Forum] DEDUCTION OF TAX FROM INTEREST INCOME OF SENIOR CITIZENS