Exempt Senior Citizens from TDS -Budget 2017
We would like to request the Finance Minister to exempt Senior Citizens from TDS in Budget 2017. The deduction of tax at source provision of Income Tax Act 1961 needs to be amended to exempt Senior Citizens as it is causing avoidable harassment to them. Filing of Form 15H by more than 10 Crore Senior Citizens in duplicate to Banks and keeping the third copy as acknowledgement to avoid TDS is causing enormous damage to Environment as 30 Crore papers are used for it. It is also additional cost burden to Banks which are required to keep a copy in file and send one copy to Income Tax department. The proposed e-filing of Form 15H has remained on paper only as most Bank branches are not geared up for the same.
Since it is compulsory to provide PAN number while opening any deposit account and with computerisation of bank operations all over India, the Banks are uploading the amount of interest paid on Form 26AS for individuals filing or who had filed a return in the past, the data is available to Income Tax Department.
For non filers the Banks can report amount of interest paid against each PAN number to Income Tax dept. easily as all the data is available in computers.
We request Local Circles to submit his proposal to Finance Minister for implementation in Budget 2017. more
Since it is compulsory to provide PAN number while opening any deposit account and with computerisation of bank operations all over India, the Banks are uploading the amount of interest paid on Form 26AS for individuals filing or who had filed a return in the past, the data is available to Income Tax Department.
For non filers the Banks can report amount of interest paid against each PAN number to Income Tax dept. easily as all the data is available in computers.
We request Local Circles to submit his proposal to Finance Minister for implementation in Budget 2017. more
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Very good suggestion but would the Hon'ble finance minister will take urgent action in exempting the senior citizen from filling of income ax return and TDS. This will help crores of tax payers. more
May 04
I have mailed this letter to the Finance Minister. Like minded Sr. Ctzs. also mail the same to the Fin. Minister. : Senior Citizen - seeking exemption. Wednesday, 3 May, 2017 3:28 PM Senior Citizen - seeking exemption. Wednesday, 3 May, 2017 3:28 PM From: "kausik lakshmi" To: fm@finance.nic.in The Finance Minister, Government of India, New Delhi Subject : TDS deductions by Banks on Interest on Fixed deposits by Senior Citizens. Sir, I wish to bring to your kind notice Senior citizens face whose only source of Income is from Interest earned on Bank Fixed deposits and have no other source of Income. If your total income from Bank FD’s exceeds the first slab, then the Bank deducts TDS on overall income. For example , suppose a senior citizen ( in the age group 60 years to 80 years ) earns an annual interest of Rs. 4,80,000/- from his bank fixed deposits , then his standard Income Tax would be only 5 % on the excess income of 1,80,000, ie Rs. 9,000/- only. For the financial year 1917-1918. Whereas the bank would deduct 5 % on the whole income of 4, 80,000 i.e. Rs. 24,000 /- . This excess amount of Rs. 15,000 deducted as TDS is a high burden for those Senior citizens who have no other source of income although the excess amount can be claimed as IT Returns after a period of one year. (in other words Advance Tax which is not applicable for Senior citizens) . As per section 208, every person whose estimated tax liability for the year is Rs. 10,000 or more, shall pay his tax in advance, in the form of “advance tax”. However, section 208 gives relief from payment of advance tax to a retired senior citizen. As per section 208 a resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession, is not liable to pay advance tax. Therefore it is requested, Interest on Bank FD’s are not subjected to this harsh TDS deduction to those Senior citizens who depend solely on their Bank FD’s and have no other sources of Income. Thanking you, L P C Kausik New Delhi 8826266299 more
May 04
Amending necessary other Acts making binding of Tax payment by Heirs / Successors , TDS by NON BUSINESSING Senior Citizen is to be Exempted which will save them in straining , counting , claiming etc., etc., . more
Jan 11
Shri Mohit Pande, This is a Great Idea. Taking your suggestion a little ahead, I would like to suggest that the Senior Citizen category should be treated separately for males and females, both. Currently, if one wishes to start FD in the same bank, where one has one’s savings account, then the benefit of extra interest rate is made applicable only the account holder points out that he/she is a senior citizen. It does NOT become automatic, because this category is not treated separately. more
Jan 11
i have already posted in this Circle and send Suggestion to Budget 2016 asking the same for Non-deducting of Tax from Fixed Deposits in Banks/Any other Financial Institutions for ALL CITIZENS. Filing Form 15H,15G is very simple but for verification become hard IT. Wrong entry or appropriate columns left non filed. Further i suggested in excess of Rs.50000/- INTEREST on Fixed deposit should collect TDS 5% on ALL FIXED DEPOSITS in Banks/Any Financial Institutions. The both suggestions should amend for the protect of Senior citizens (there are a HUGE NUMBER PEOPLE WITH-OUT PENSIONS) for their MEDICAL NEEDS. more
Jan 11
