Banking - TDS on Term Deposits in India - Income Tax Rules?

A customer has submitted 15G or 15H form in the month of April for all the Term Deposits available on his/her name as on that date and declared that his total income will not cross the limit fixed by Income Tax Department.





1. After submitting that 15G or 15H, after some days if he / she opens one more Term Deposits, IS IT COMPULSORY TO SUBMIT A NEW 15G / 15H FORM FOR THAT NEW TERM DEPOSIT? THE ONE WHICH IS ALREADY SUBMITTED DOESN'T WORK?





2.After submitting the 15G / 15H in the month of April, one of his / her Term Deposits matured after a few months in the same financial year. SHOULD HE / SHE SUBMIT A NEW 15G / 15H FOR THAT RENEWED DEPOSIT (SAY THE ACCOUNT NUMBER IS CHANGED).





3.What are the Income Tax Department rules say about this? Submitting 15G / 15H once in a year in the month of April enough? or submit each and every time customer make a new / renew the existing Term Deposit.





Please clarify / confirm. And give appropriate sections names if possible.|||Point wise Answers

1. YES, You should get new 15G/ H. Reason is that, in these form it is responsibility of recipient for declaration of lower incomes in relation to a PREVIOUS YEAR, who is submitting 15G/15H. After depositing more money to Bank he should recalculate his calculation as the amount of interest will increase after additional deposit.



2. YES, because decision of renewal of deposit is communicated after maturity, While filling the form 15G/15H receiver needs to provide the details in (Schedule III in this case) "PERIOD FOR WHICH SUCH SUMS WERE GIVEN ON INTEREST". where the full period of deposit should be mentioned and same will be communicated after maturity.



In NUT SHELL 15G/15H should be resubmitted:-

1. Whenever there is increase in amount of interest.

2. Whenever there is a change previous year.



Further Check:

%26gt;Payer should check that total income is not exceeding exempted limit (On and From 01.06.2002).



REFERENCES

1. Section 197A

2. Form 15G/15H

3. Rule 29C



Best wishes|||Many bank has system of unique ID of every customer. In that situation all the FDRs though made at differant time and for differant amount but linked to unique ID.Therefore once a particular customer submitt Form 15G/15H it applies on all the FDR. You check whether your bank has such system. In case there no such system, every time while crediting interest TDS will be deducted if Form 15G/15H not found in record.