Regarding tax
2 years ago
I am planing to open 10 lakh FD on my mother's name. She is house wife. will she get taxed? or will it be considered her income ? & will she need to pay tax for it. please explain
Ankur Goel @ Complete Law Shield
Responded 2 years ago
A.if your mother's total income for year which includes the interest from the FD is less than 5 lakhs then it will not be taxable.
Bank will also ask form 15H for senior citizen.
Better invest in tax saving instruments.
Bank will also ask form 15H for senior citizen.
Better invest in tax saving instruments.
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Madhulika Bhatnagar
Responded 2 years ago
A.In case of FDs, the interest you get during an assessment year is taxable and not the principle amount. For women, the tax exemption limit is 5 lakhs.
So if your mother's total income for the assessment year, including the interest from the FD, is less than 5 lakhs then it will not be taxable. If any TDS is deducted by the bank in such a case it is usually refunded upon filing of IT return.
If the total income of your mother, including the FD interest, is more than 5 lakh then tax liability will arise.
It is better to approach a CA and get a more informed opinion based on your mother's complete assets.
So if your mother's total income for the assessment year, including the interest from the FD, is less than 5 lakhs then it will not be taxable. If any TDS is deducted by the bank in such a case it is usually refunded upon filing of IT return.
If the total income of your mother, including the FD interest, is more than 5 lakh then tax liability will arise.
It is better to approach a CA and get a more informed opinion based on your mother's complete assets.
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A.Dear Sir,
Go for post office schemes to get tax exemption.
Go for post office schemes to get tax exemption.
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Ankita Jaiswal
Responded 2 years ago
A.Hi, u meet u r local CA or tax consultant lawyer, they will help u more regarding this,
If u like my ans PlZ rate my ans *****, thanks
If u like my ans PlZ rate my ans *****, thanks
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
A.Hi,
Considering that your mother is a senior citizen, she will be coming under the purview of S.80TTB of the IT Act which allows for tax benefits on interest earned from deposits. The benefit is applicable for an income upto Rs.50,000 per annum. Interest is also seen as a form of income which s why it is taxable.
If you find my answer helpful then kindly rate me.
Considering that your mother is a senior citizen, she will be coming under the purview of S.80TTB of the IT Act which allows for tax benefits on interest earned from deposits. The benefit is applicable for an income upto Rs.50,000 per annum. Interest is also seen as a form of income which s why it is taxable.
If you find my answer helpful then kindly rate me.
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A.Hi,
Since the interest on FD is considered to be a source of income, therefore the FD is also taxable. However, if your mother is a senior citizen then no TDS will be deducted for interest received up to Rs. 50,000 pa.
If you find my answer helpful then kindly rate me.
Since the interest on FD is considered to be a source of income, therefore the FD is also taxable. However, if your mother is a senior citizen then no TDS will be deducted for interest received up to Rs. 50,000 pa.
If you find my answer helpful then kindly rate me.
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A.Regardless in whose name you are opening the FD the bank will deduct the TDS unless you provide the form 15H for senior citizen.
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