ITR Filing Last Date 2023: You have only 5 days left to file income tax return and file ITR before penalty is imposed on you. Learn important news related to TDS here.
ITR Filing Last Date 2023: Do you also have different banks or more than one account and fixed deposits, then you should know some things before income tax filing. According to the Income Tax rules, the bank has to file TDS at the rate of 10% on the interest deposited in the account holders’ account or fixed deposits, this happens only when the interest of all bank accounts and FDs together is above Rs 40,000 in a year. Therefore, if the interest of all bank accounts and all deposits together does not exceed Rs 40,000, then banks do not need to deduct any kind of tax.
Who can submit Form 15G
A local resident who is earning interest income from bank accounts and other deposits can submit Form 15G to the bank. It can be understood in this way that if you are getting more than Rs 40,000 interest on the money deposited in banks in a year, then the bank can deduct 10% TDS on the additional interest. And for senior citizens, this limit is Rs 50,000. If the senior citizen is getting interest of more than Rs 50,000 in a year, then he will have to deduct TDS at the rate of 10 per cent on the additional interest.
When to give Form 15G
If your income does not equal to the taxable income even after adding the interest income of the year, then you can stop TDS deduction by filling Form 15G-15G/H. If any account holder or deposit owner is below 60 years of age, then he can fill Form 15G and take proof of interest payment from the bank and save tax through it.
For those who have taken the old tax regime, the basic exemption limit is Rs 2.50 lakh and for those who have adopted the new tax regime, the basic exemption limit is Rs 3 lakh.
What if you are unable to submit Form 15G?
However, even if a person is not eligible to submit Form 15G, you do not need to request the bank to deduct TDS on the interest. This should be the case if the combined amount of interest received on all your bank accounts and deposits does not exceed Rs 40,000 in a year and in case of senior citizens does not exceed Rs 50,000.
