My ten year Bank FD matures on 10th March, 2017 and the significant maturity benefits WILL be invested in Mutual funds, only.
My income in this Financial year (2016-17) has been higher and will be low for the next financial year.
If I take the maturity amount I have to pay income tax on the interest amount in a higher income tax slab for this Financial year (2016-17).
Is there any way to defer it so the accrued interest income can be shown as received in the next financial year(2017-18)?
I have given written instructions NOT to Auto-renew the FD – Can I submit the FD receipt for redemption after 1st April 2017 and show it as income in next financial year(2017-18)?
My mother (super senior citizen 82 yrs) had an FD in SBI. FD was cumulative (interest is accrued) and I keep renewing for several years (and giving form 15H also) and there was no tax cut by bank. Howevder this time when matured the interest earned was Rs.2,35,729=00. SBI deducted approx TDS (10%) although I have submitted for 15H. SBI told me that if interest crosses 2 lakhs, form 15H submitted is NOT applicable and TDS will deducted. If interest is less than 2 lakhs, 15H is honored and TDS will NOT be cut. Is there any rule like this ?
It is false, and they wrongly informed you. Let them show the rule.
It looks like there is a cap on FD interest limit beyond which TDS is cut by bank despite giving 15G or 15H.
There is a link below for IDBI bank ,….should be similar for other banks as well
Whether avoiding TDS means avoiding TAX?