Information Regarding Income Tax
1) If any Savings accountholder credits amount of Rs.10.00 lakhs or more in cash to his/her savings account in total during a year, Bank has to report it to the Income Tax Office by way of Annual Information Return (AIR) yearly according to the Income Tax Act, 1961.
2. 2) Fixed Deposits of Rs.2.00 lakhs and above, amount of Rs.2.00 lakh and above, in cash credited in any account and any cheque, pay Order or cash amount of Rs.1.00 lakh withdrawn from any account shall have to be informed by bank yearly to the Income Tax Office.
3. 3) Permanent Account No. (PAN) is essential for every cash transaction of Rs.50,000/- and above in Bank.
However, if He/She dosen’t have PAN then He/She could give declaration in Form No.60. It is available on this website which can be downloaded.
4. 4) Interest income of Rs.10,000/- and above in a financial year from Fixed Deposit attracts 10% TDS . However, if the depositor is having income from agriculture and gives undertaking in Form No.61 the Tax will not be deducted from the interest income of depositor. But Bank has to report the information on yearly basis to the Income Tax Office. Form No.61 is available on this website which can be downloaded.
5. 5) With effect from 1st June 2015 every depositor whose income from total interest from total deposits kept in all the branches of Bank exceeds Rs.10,000/- in a Financial Year attracts TDS @10% . Here, income from interest has considered from Fixed Deposits and Recurring Deposit accounts. However, the following categories are exempted from TDS application.
I) Those individual depositors whose total taxable income from all the sources is less than Rs.2,50,000/- in a financial year and whose age is less than 60 years can submit declaration in Form No.15 G in triplicate. Form No.15 G is available on this website which can be downloaded.
Income from agriculture is totally tax free, but from agricultural income if investment has been done then interest income from that investment is not tax free. Further Companies and Firms are not allowed to submit this Form.
II) a. Those individual depositors whose total taxable income from all the sources is less than Rs.3,00,000/- in a financial year and whose age is more than 60 years but less than 80,
b. Those individual depositors whose total taxable income from all the sources is less than Rs.5,00,000/- in a financial year and whose age is more than 80 years,
both can submit a declaration in Form No.15H in triplicate. Form No.15 H is available on this website which can be downloaded.
The above declarations should be submitted in a month in which amount of interest from deposits exceed Rs.10,000/- or at the time of acceptance of deposits. Such declaration should be submitted at beginning of every financial year. The concerned Branch will handover a certificate in Form No.16 A for the TDS to depositor at the end of 30 days from the concerned end of the quarter. These declarations should be accompanied a zerox copy of PAN card and unless PAN card is produced declaration is not valid.