8 April 2014 - Wealth18.com

Apr82014 by wealth18.comNo Comments

Who can submit Form 15G / 15H to avoid TDS on Bank FD ?

Taxation

Banks are required to deduct Tax (TDS) @ 10 % if the interest earned on FD exceeds Rs 10,000 in a financial year. However, if you meet certain conditions, you can submit Form 15G / Form 15H to the Bank & they will not deduct any TDS. Read my post - How to avoid TDS on Bank FD. Form 15G can be submitted by Resident, non-senior citizen investor if following conditions are fulfilled: 1) The final tax on his estimated total income should be NIL ; and 2) The aggregate of the interest etc. received during the financial year should not exceed the basic exemption slab Form 15H can be submitted by Resident senior citizen investor if following condition are fulfilled: 1) The final tax on his estimated total income should be NIL ; and Senior Citizen is person who is atleast 60 years of ...

NEFT & RTGS Transfer – meaning, differences, charges & process

How to Series

In banking context, you must have heard phrases like “NEFT transfer”& “RTGS”. In this post, we will discuss – what is NEFT & RTGS, how they are different, charges, and process of using NEFT & RTGS etc. A. What is NEFT & RTGS? National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS) are two main system of transferring funds from one bank to another. These systems are managed by RBI and it allows transferring funds across banks within the country. B. NEFT - National Electronic Fund Transfer NEFT operates on a deferred net settlement (DNS) basis and settles transactions in batches. All transactions received till a particular cut-off time is settled in batches. Presently, NEFT operates in hourly batches - there are twelve settlements from 8 am to 7 p...

Tax Free Bonds – Should you invest in these?

Bonds

Tax free bonds are flavour of the market since 2012 with many Government & PSU companies raising thousands of crores from market via these Bonds. There Bonds are offering good returns for long duration as well as tax free income. In 2012-2013, Around 10 government owned companies raised Rs 50000 crores via tax-free bonds. Positive Points Safe & Secure - All tax-free bonds are issued only by government-owned companies. So they are unlikely to default. These are normally rated AA or higher. Tax FREE Interest - Interest received on these bonds are fully exempt from income tax. ( as per Section 10 (15) (iv) (h) of Income Tax Act, 1961) No TDS - Since the interest income on these Bonds is exempt from tax, no Tax Deduction at Source (TDS) is required. No Wealth Tax - Wealth Tax...