In this case bank will deduct TDS @ 10%under 194A. If interest amount is more than 10000.
Person can file ITR and claim refund of the same
Example 1
Suppose a person as FD of 5 lac @8% p.a for 6 months
Whether TDS is applicable
View AnswerInterest on FD = 500000*8%*6/12= 20000
Since it is more than 10000 bank will deduct TDS @ 10%
Example 2
Can the person submit 15G form
View AnswerYes, If he does not have any other income. He can submit 15G form
Also, If he has other income but is total income is less than income tax slab rate (Rs 250000),Then also he can submit 15G form
Example 3
Suppose a person does not have any other income and he fails to submit 15G form, can he claim refund
View AnswerIn this case bank will deduct TDS @ 10%under 194A.
20000*10%=2000
Person can file ITR and clean refund of this 2000
| Particulars | Amount |
| INCOME FROM OTHER SOURCES | 20000 |
| GROSS TOTAL INCOME | 20000 |
| Less | |
| DEDUCTIONS | |
| 80C | 0 |
| 80D | 0 |
| 80TTA | 0 |
| TOTAL DEDUCTIONS | 0 |
| NET TOTAL INCOME | 20000 |
| TAX | 0 |
| REBATE | 0 |
| NET TAX | 0 |
| CESS | 0 |
| TAX+ CESS | 0 |
| Less | |
| Annual TDS | 2000 |
| Net Tax Payable (refund) | -2000 |
Note:-
He can fill ITR 1 Form for the same.
Example 4
Suppose a person has salary income of 15000 per month + interest income on FD. He does not have any other income and he fails to submit 15G form, can he claim refund
View AnswerIn this case bank will deduct TDS @ 10%under 194A.
20000*10%=2000
Person can file ITR and clean refund of this 2000
| Particulars | Amount |
| INCOME FROM SALARIES | 180000 |
| INCOME FROM OTHER SOURCES | 20000 |
| GROSS TOTAL INCOME | 200000 |
| Less | |
| DEDUCTIONS | |
| 80C | 0 |
| 80D | 0 |
| 80TTA | 0 |
| TOTAL DEDUCTIONS | 0 |
| NET TOTAL INCOME | 200000 |
| TAX | 0 |
| REBATE | 0 |
| NET TAX | 0 |
| CESS | 0 |
| TAX+ CESS | 0 |
| Less | |
| Annual TDS | 2000 |
| Net Tax Payable (refund) | -2000 |
