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FAQs |
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If you have any queries that are not answered here, please call us or
write to us.
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When do I become liable for TDS?
If the aggregate interest that you are likely to earn for all your deposits held in a branch in a customer id is greater than Rs .10,000/- in a financial year,you become liaable fo TDS.Note: Tax liability for TDS purpose is determined at branch level. Deposits held by minors are also subject to TDS. The credit for the TDS can be claimed by the person in whose hands the minor's income is included.
Note: Tax liability for TDS purpose is determined at branch level. Deposits held by minors are also subject to TDS. The credit for the TDS can be claimed by the person in whose hands the minor's income is included.
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When is TDS deducted?
TDS is deducted every time the Bank pays/re-invests interest during the Financial
year.In addition TDS is also deucted on interest accrued(but nt yet paid)
at the end of financial year viz. 31st March.
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Can TDS be recovered from my principal of the FD
in any cse ?
Yes, cases where interest amount is not sufficient to recover TDS, the same is recovered from the principal of the deposit.
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Can the maturity amount of the deposit reduce due to TDS ?
Yes, in case of reinvestment deposits ,the interest reinvested is post TDS recovery & hence the maturity amount for re-investment deposits would very to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.
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Does any change or enhancement in my deposit portfolio affect TDS liability?
Yes. If the change or enhancement in your deposit portfolio earns a cumulative
interest along with that of the earlier portfolio greater than Rs. 10,000/-
you will be liable for TDS on your current portfolio.
Note: If interest on the current portfolio is not sufficient to cover TDS, it will be recovered from the principal.
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At what rate is TDS deducted?
TDS is deducted at the following rates for the following category of account holders:
W.e.f Aug 09, applicable TDS rates are:
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Tax Rate |
Surcharge |
Education Cess |
TOTAL |
| Resident Individuals & HUF |
10% |
---- |
---- |
10% |
| Corporate Entity |
10% |
---- |
---- |
10% |
| NRO |
30% |
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3% |
30.90% |
| Firms |
10% |
---- |
---- |
10% |
| Co-operative Societies & Local Authority |
10% |
---- |
---- |
10% |
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Important
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As per section 206AA introduced by Finance (No. 2) Act, 2009 w.e.f
01.04.2010, every person who receives income on which TDS is deductible
shall furnish his PANo, failing which TDS shall be deducted at
rate of 20% in case individuals and at the rate of 30% in case
of non-individuals for Domestic deposits and 30.90% in case of
NRO deposits |
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How and when can I apply for exemption on TDS?
If you believe that your total interest income for the year will not fall within overall taxable limits, you should inform the bank not to deduct TDS on deposits. You can do this by submitting a form as per the provisions of the Income Tax Act. The forms required for different categories have been listed below:
| Category of Account |
Form Required |
| Individual |
15H |
| Companies |
15AA |
| Association of Companies |
15AA |
| Trusts |
15AA |
Note:
You have to obtain 15AA Form from the Assessing Officer of Income Tax department.
Even if the customer submits the 15H/15AA Form, the tax which has already been deducted by way of TDS during the year prior to submission of 15H Form will not be refunded by the bank. However Certificates will be issued to the customers which can be used while filing his/her tax return.
15H/15AA Forms are valid only for the particular financial year in which they are issued.
A fresh Form 15G/H needs to be furnished for each deposit that is placed with the Bank within the first week of the financial year.
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When does the Bank issue a TDS Certificate?
TDS Certificate in Form 16A starting from financial year 2010-11, for TDS deducted during a calender quarter will be issued in the next month of the respective quarter.
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Can the account be opened in a joint account with a non-senior citizen?
Yes, provided the first account holder is a senior citizen.
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What documentation is required to open a senior citizen FD?
While opening the account, the customer needs to provide proof of age establishing that he/she is a Senior Citizen. To accomplish this, either of the following can be submitted:
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Secondary School Leaving Certificate (10th Class) |
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LIC Policy |
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Voters Identity Card |
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Pension Payment Order |
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Birth Certificate issued by the competent authority |
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Passport |
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Defence ID Card / Govt ID Card (Provided they have the cardholder's photo, signature and date of birth) |
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PSU Issued ID Cards |
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Senior Citizen Cards issued by Indian Airlines / Indian Railways |
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PAN Card
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I am an existing customer, do I need to apply for a separate Customer ID to avail this facility?
There is no need to create a separate Customer ID to avail of this product. For new Fixed Deposits, you only have to provide proof of age .In case proof of age is not submitted, the interest earned will be the same as for the regular FD.
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Will I have to provide proof of age for all the subsequent Fixed Deposits?
All subsequent Fixed Deposit applications need to be accompanied by proof of age. The only exception to this rule is where a customer already has a live Senior Citizen Fixed Deposit existing at the time of placing the next Fixed Deposit. The Fixed Deposit number needs to be mentioned on the Form. In such cases, it will be assumed that proof of age already exists with the Bank.
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Can I open a Fixed Deposit through Netbanking if my PAN details are not updated with the bank?
Through NetBanking, FD's can be booked by any applicant subject to PAN is updated with the Bank for the Primary applicant in which the Fixed Deposit is getting booked
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What is the NEW policy with regards to PAN to book fixed deposit with our bank?
- Where total FD value under per Cust ID per branch is <=50,000/- (including the new FD being booked) ---- NO PAN & NO FORM 60.
- Where total FD value under per Cust ID per branch is
>50,000/ (including the new FD being booked) ---- PAN REQUIRED
MANDATORILY
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What are the implications of booking an FD without PAN?
In the absence of PAN, following are the implications for customers:
- TDS will be recovered at 20%(as against 10%)
- NO TDS credit from the Income Tax department
- NO TDS certificate will be issued (As per CBDT circular no:03/11)
- Form 15G/H and other exemption certificates will be invalid and penal TDS will apply
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| Apply Now |
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Just fill the Online Application Form and our representative will get in touch with you shortly.
Other Ways to apply :
*Conditions Apply
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