After my father expired 10 years back, my mother received a lump sum amount from insurance. The amount was credited to her state bank account as deposits which have tax deducted at source. She has been accruing interest on the same and has never filed a tax return. under what conditions does she need to file income tax returns?
If the interest received is the only source of income & the sum does not exceed 250000 , then she does not require to file return
But i will suggest you to file her return, as she can claim the refund of the TDS that is deducted by bank on interest paid .
She can file her Income tax return and claim refund for assessment year 2015-16, 2016-17
and from current year on word she can submit form 15 H/G for non deduction of tax .
15H- for senior citizen , those who are 60 years or older
15G is for everybody else
Conditions you must fulfil to submit form 15 G
1 you are an individual or HUF
2 you must be a resident Indian
3 you should be less than 60 years old
4 text calculated on your total income is nil
5 that total interest income for the year is less than the minimum exams and limit of that year
Conditions you must fulfil to submit form 15 H
1 you are an individual
2 you must be a resident Indian
3 you are 60 years old or will be 60 years old during the year for which you are submitting the form
4 text calculated on your total income is nil
Hope your query resolve
for any doubt plz be in touch
If income from the interest on fixed deposit along with any other income dueing th year exceeds maximum amount chargeable to tax ( currently it is 2.5 lacs for non-senior citizens), she has to file return of income.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
As She is earning the income form Interest on Fixed Deposit form Bank and the bank is deduct the TDS on the Accured Interest.
If she is receiving the Interest form FD and the total interest under the total taxable limit. Then she will file the Income tax return so that the TDS deducted will be refund. if she is not filing the ITR then refund of TDS is not possible.
Yes. Income from FD Interest is fully taxable as Income from Other Sources in the hands of the recipient. Your Mother will have to pay Income Tax on the Income exceeding Rs. 5 Lakhs (If your Mother is aged between 60 and 80 years) or on the Income exceeding Rs. 2.5 Lakhs (If her age is below 60 years).
She is required to file Returns if:
1. Her Taxable Income from all sources is above 2.5 Lakhs or 5 Lakhs as the case may be; or
2. There is any Tax Deducted at Source (TDS), irrespective of her Taxable Income.
Since you are saying that State Bank has made TDS, then she has to file IT Returns so as to claim the Refund of the Tax deducted.
Note: She can claim Refund for 6 Years. Last 2 Years (FY 2014-15 and 2015-16) by Filing the Returns now. Then for 4 years preceding i.e FY 2010-11 to 2013-14 by applying for Condonation of Delay.
Feel free to contact me for any clarifications.
Regards
CA. Pradeep Bhat
Only if interest income crosses Rs. 2,50,000/- or she want to claim refund of the TDS dedcuted
Hi,
if the money has been deposited in FD account, and interest amount exceeds Rs 10000. then bank deduct 10% TDS.
TDS on Fixed Deposit. TDS on Interest on Fixed Deposit is liable to be deducted @ 10% by the Bank if the amount paid or expected to be paid during the financial year exceeds Rs. 10,000. This limit of Rs. 10,000 is per bank branch per individual. But if your total income is below the taxable limit, you can submit Form 15G and Form 15H to the bank requesting them not to deduct any TDS on your interest.
so, if her income is below tax liability i.e Rs250000 or if she is a senior citizen then limit is Rs 300000/-
then she can submit form 15G/H to the bank to not deduct TDS.
She can claim refund for these TDS amount by filing income tax returns.
all these TDS will reflect in 26AS. to check 26 AS you can login to Income tax site and see how much TDS has been deducted and can claim refund by filing IT return.
Hello Sir,
It is mandatory to file Income Tax Returns if your Income exceeds the minimum amount chargeable to tax which in the current year is 250,000/-.
But, as you have mentioned that TDS is being deducted on her FD's, it is advised to file her IT Returns every year.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
If a person has taxable income or income in which TDS has been deducted then return is required to be filled. aS Appears from the facts above TDS has been deducted then she needs to file the income tax return
If yours mother Interest Income along with other incomes exceeded 250000 you need to file the return. As the bank is deducting the tds and if your mother has no tax liability.You need to claim TDS as refund after filing your Income Tax Return.
If her income is going above taxable limit thn she need to file returns
