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  #1  
Old 15th February 2018, 06:49 AM
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Default Senior Citizen TDS Question



Hi,

I recently came to know of Senior Citizen Savings Scheme (SCSS) - https://www.indiapost.gov.in/Financi...S-Account.aspx
and am planning to open this deposit for my mother. I read that there is TDS for interest above 10,000 per year which will be the case (since amount will be about 1 lakh which means about 43,000 in interest per year).

However my mother only has pension, and a fixed deposit interest as a source of income and the total per year for that is less than 1,00,000 together. So I think the amount deducted by TDS can also be claimed back by filing IT return (since total income would be less than 1,50,000).

Could someone please confirm if this is correct? or if my understanding of the taxes is wrong?
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  #2  
Old 15th February 2018, 07:20 AM
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Quote:
Originally Posted by Kruvi Valya View Post
Hi,

I recently came to know of Senior Citizen Savings Scheme (SCSS) - I read that there is TDS for interest above 10,000 per year which will be the case

(since amount will be about 1 lakh which means about 43,000 in interest per year).
43k interest on 1 lakh !!!!

I could not under stand this ?

Anyway I am not a tax expert , but interest exemption for this year is 10k,

and from next year onward it will be 50k.
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  #3  
Old 15th February 2018, 09:49 AM
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Originally Posted by Kruvi Valya View Post
So I think the amount deducted by TDS can also be claimed back by filing IT return
Just fill form 15H and submit. No TDS will be deducted.

There is no tax on income up to Rs 3 lac for senior citizens.

15H can be submitted if the income (after all eligible deductions) is less than Rs 3 lac.
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  #4  
Old 15th February 2018, 01:03 PM
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Originally Posted by ramkasi View Post
43k interest on 1 lakh !!!!
Sorry, that should have been for the entire period (i.e. 5 years). It's about 8300 per year.
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Old 15th February 2018, 01:04 PM
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Thank you! I will do this.
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