- Minimum Amount – Rs. 100 & in Multiples of Rs. 100
- Maximum amount – Rs. 1.5 Lakhs (in a FY)
- Tenure – 5 Years (Lock In)
- Can be booked with Monthly and quarterly payout
- In the case of joint deposits, the Tax benefit under 80 c will be available only to the first holder of the deposit
Tax Deductions For Re-investment Fixed Deposits
The following will be applicable for a Regular Fixed Deposit
- TDS will be deducted when interest payable or reinvested on RD and FD per customer across all branches, exceeds Rs.40,000/- (Rs. 50,000/- for senior citizens) in a financial year.
- TDS Certificate will be mailed to you after end of every quarter during the financial Year providing the details of TDS deducted during the quarter.
W.e.f Aug 09, applicable TDS rates(if applicable) are as follows:
w.e.f 14th May 2020 till 31st March 2021, TDS rate is reduced from 10% to 7.5% on resident deposits.
|Resident Individuals & HUF||10%||----||----||10%|
|Co-operative Societies & Local Authority||10%||----||----||10%|
As per section 206AA introduced by finance (No.2) Act, 2009 wef 01.4.2010, every person who receives income on which TDS is deductible shall furnish his pan, failing which TDS shall be deducted at the rate of 20% as against the existing TDS rate.
TDS rate is applicable from time to time as per the IT Act, 1961 and IT rules.Today, TDS is recovered when interest payable or reinvested on FD & RD per customer, across all Branch, exceeds Rs 40,000/- (Rs. 50,000/- for senior citizen) in a Financial Year. Further, TDS is recovered at the end of the financial year on Interest accruals if applicable.
- If interest amount is insufficient to recover TDS, the same may get recovered from the principal amount of Fixed Deposit. If customer wishes to have TDS recovered from CASA, same can be availed by filling separate declaration at branch.
- For renewed deposits, the new deposit amount consists of the original deposit amount plus Interest Less TDS, if any, less compounding effect on TDS. For reinvestment deposit, the interest reinvested is post TDS recovery and "hence the maturity amount for reinvestment deposits would vary to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.
- As Per Section 139A(5A) of IT Act, every person receiving any sum of income or amount from which tax has been deducted under the provisions of IT Act shall provide his PAN to the person responsible for deducting such tax. In case PAN is not provided as required, the bank shall not be liable for the non availment of the credit of Tax deducted at Source and non-issuance of TDS certificate.
- If your PAN is not updated with the Bank or is incorrect; please visit your nearest branch to submit your PAN details.
- No deductions of Tax shall be made from the taxable interest in the case of an individual resident in India, if such individual furnishes to the Bank, a declaration in writing in the prescribed Format (Form 15G / Form 15H as applicable) to the effect that the tax on his estimated total income for the year in which such interest income is to be included in computing his total income will be Nil. This is subject to PAN availability on Bank records.
- If aggregated value of all outstanding FDs/RDs booked in same customer id during the Financial Year exceeds INR 5 Lakhs limit (*) then PAN/Form 60 is mandatory.
- In absence of PAN/Form 60:
(a) FD/RD will not be renewed on maturity and maturity proceeds will be credited to your linked account or a Demand Draft will be sent to your mailing address as updated in Bank's records.
(b) Maturity instructions to convert RD proceeds to FD will not be acted upon and RD proceeds will be credited to your linked account on maturity.Fixed Deposits booked with monthly or quarterly interest payout option, TDS recovery will by default happen from linked current / savings account. Please visit nearest branch / contact RM for further clarification.
The maximum interest not charged to tax during the financial year where form 15 G/H is submitted is as
i) Upto 3, 00,000/- for residents of India below the age of 60 years or a person (not being a company or firm).
ii) Upto 7,00,000/- for senior citizen residents of India above the age of 60 years any time during the FY
iii) Form 15G/ H to be submitted by customer in duplicate to the bank, for submitting one copy for Bank record and second copy to be returned to customer with Branch seal as an acknowledgment. A fresh Form 15G /H needs to be submitted at the start of every new Financial Year. In case form 15G/H is submitted post interest payout/credit, waiver shall be effective from the day next to the interest payout /credit immediately preceding the date of submission of form 15G/H.
iv) Form 15G/H needs to be submitted for every fixed Deposits booked with bank for Tax exemption.
v) The bank shall not be liable for any consequences arising due to delay or non-submission of Form 15G/H
vi) To enable us to serve you better kindly submit the Form 15G/H latest by April 1st of the new financial year.
Note: The above guidelines are subject to change as per Income Tax regulations /directives of Finance Ministry Govt of India prevalent from time to time.
- As per section 206AA introduced by Finance (No. 2) Act, 2009 wef 01.04.2010, every person who receives income on which TDS (This stands for Tax Deducted at Source, which means the tax you have to pay on your salary is already deducted and the net amount is received by you.) is deductible shall furnish his PAN, failing which TDS (This stands for Tax Deducted at Source, which means the tax you have to pay on your salary is already deducted and the net amount is received by you.) shall be deducted at the rate of 20%(as against 10% which is existing TDS (This stands for Tax Deducted at Source, which means the tax you have to pay on your salary is already deducted and the net amount is received by you.) rate) in case of Domestic deposits and 30.90% in case of NRO deposits
- Please further Note that in the absence of PAN, as per CBDT circular no:03/11, TDS (This stands for Tax Deducted at Source, which means the tax you have to pay on your salary is already deducted and the net amount is received by you.) certificate will not be issued, form 15G/H and other exemption certificates will be invalid even if submitted and penal TDS (This stands for Tax Deducted at Source, which means the tax you have to pay on your salary is already deducted and the net amount is received by you.) will be applicable.