Sirs & Friends, I have a query.I am a school teacher. I have a Fixed Deposit which gives me more than Rs.10000 interest amount in a year.I am the sole holder of this account. Bank asked me to fill up a 15G form in which I have to mention my PAN number,what work I do etc.Now my question is that if I fill-up this form then could it stop deducting TDS? and,if I submit 15G form the total interest amount would be added to my taxable income,is it true?Is there any particular % of deduction of TDS?If anyone has the details please provide it to me.I am confused
Bank will stop to deduct tax on interest above Rs.10000 @ 10% U/S 194A as 15G has already been submitted. Do not worry , if tax on interest is deducted , you will have to do as follows:
a) Collect Form 16A as an evidence of such deduction from bank;
b) Calculate Taxable income and Income tax payable thereon (including E Cess) adding bank interest with the all other income;
c) Then tax to be paid = Total tax payable(incld.E C) minus tax already deducted by bank as per Form 16A issued by Bank.
