If the total interest earned by a person from fixed deposits(FD) in banks is 1 lakh in current financial year and he has no other income, should he pay tax on it? If no, should he submit any declarations except PAN No. in bank?
I've read some where that if the interest on FD is above 10,000 in a financial year, its taxable. The PAN No. has been given in all banks while opening FD. Please help.
Kumar Doab (FIN) 24 March 2012
KYC norms have been introduced and compliance is made mandatory. PAN card copy hence no. is to be collectedby the bank from customer holding PAN card.
TDS is applied by bank if interest earned is >Rs.10000/pa from FD(s).
If the income from all sources (including interest from savings a/c etc) of customer is below ITax limits, customer can apply for IT refund.
SUBHANKAR CHATTERJEE (ADVOCATE) 27 March 2012
You can file form 15 G (if your age below 65 years) and 15 H (if your age is more than 65 years) to the Banker, to confirm that your income is not taxable under income tax act, as the limit of income tax does not exceed your interest amount. In that case you have not to file your income tax return. Otherwise, you can provide yor pan only to the banker and after they charged T.D.S. You can file your return and claim for income tax refund.
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