The Tax Preparation Blog

Question: Which form to fill for exemption of TDS at Bank by an elderly person?

My neighbour, Manimala aunty, is 63 years old. She sold a vacant plot recently for about 13 Lakh rupees and deposited the entire amount in her State Bank of India account.

She came to me to ask if bank is going to deduct tax on the amount or its interest. She is not working, has no personal income neither does she hold a PAN card.

1. Would there be a TDS from Bank?
2. Would it be on the principle amount or the interest on the amount?
3. Is there any form from IT Dept that needs to be filled by her to get exemption of tax?
Form 15H is for people over 65years of age.. Is there any form that can be submitted by a non-working lady of 63 years to get exemption of Income tax.

Answer: 1. As interest income would be > Rs 10,000/-, Bank will deduct TDS.

2. On the interest amount.

3. If her annual income is < Rs 1,90,000/- then she is eligible to submit Form 15H.

She has to report the transaction i.e. deposit of Rs 13 lakhs in Schedule AIR of the ITR.

She might have incurred LTCGs and might be liable for paying LTCG tax.

For this she will require a PAN.

HMT

The Race To Feed The Planet – Why We Need A New Green Revolution To Stop Hunger

World leaders are meeting in New York this week to discuss progress on the United Nation’s Millennium Development Goals. The world’s nations have failed miserably in addressing one of the main goals, the fight against hunger.

Little_PAN_Card_Holder_Of_India

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