My FD curiosity is lower than ₹5 lakh. Am I exempt from TDS if I submit type 15G for each monetary 12 months?
– Name withheld on request
We presume that you just don’t have any earnings apart from curiosity earned from fastened deposit (FD).
Since your curiosity from FD is under the tax exemption threshold of ₹5 lakh, your tax legal responsibility shall be zero and by submitting Form 15G along with your financial institution, you may be exempt from tax deducted at supply (TDS) with respect to your curiosity earnings.
However, in case you have any earnings apart from FD curiosity which can push your complete earnings within the stated monetary 12 months above ₹5 lakh threshold, then you might want to assess your tax legal responsibility and pay tax as per the relevant tax slab. In such case, the place you could have any earnings tax legal responsibility, submitting Form 15G will not be useful and if TDS is just not deducted by financial institution and also you default/ delay in paying advance tax, curiosity could also be charged from you on the price of 1% each year (topic to actual calculations).
– Shailesh Kumar, Partner, Nangia & Co LLP.
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