Latest news with #Section87A
Mint
3 days ago
- Business
- Mint
Here's all you need to know about Form 16 before filing your income tax return
Salaried employees across India are awaiting a key document — Form 16 — from their employer to file their income tax return (ITR). In this article we lay out why Form 16 is an important document for employees to file their taxes, by when you can expect to get your Form 16, and the important details it contains. TDS certificate Form 16 is important for employees as it contains details of the tax deducted at source (TDS) by the employer. According to the income tax rules, employers must issue Form 16 by 15 June read | For some NRIs, capital gains from Indian mutual funds are tax-free It also contains other details such as deductions claimed under various sections of the Income Tax Act, including 80C and 80D, house rent allowance (HRA), and others. Simplifying the process Form 16 streamlines the process of filing income tax returns, particularly when using pre-filled forms on the income tax portal. However, in case of a delay from the employer, individuals can still file their returns by using documents such as salary slips, Form 26AS, and the Annual Information Statement (AIS). 'For FY25, the last date to issue Form 16 is 15 June. In case of any delay in issuing Form 16, there is penalty of ₹500 per day on the employer," said Mayank Mohanka, founder of TaxAaram India. Also read | Who can avail the indexation benefit on property sale and is it even worth it?Even after receiving Form 16, it is advisable to verify the details across platforms to avoid any discrepancies that could lead to enquiry from the Income Tax Department. Does everyone get a Form 16? Employers are not required to provide Form 16 to employees whose salaries were not subjected to TDS. For example, taxable income up to ₹5 lakh is tax-free under the old tax regime, and up to ₹7 lakh under the new tax regime.'For example, in the old tax regime income up to ₹5 lakh is tax-free after availing a rebate under Section 87A. In the new tax regime, income up to ₹7 lakh is tax-free for FY25. Note that from FY26, the nil tax threshold has been raised to ₹12 lakh under Section 87A", said Mohanka of TaxAaram India. Parts A and B Form 16 is segregated into two parts — Part A and Part B. Part A contains details such as the name of the employer and employee, the employer's Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN), the employee's PAN, period of employment, TDS deducted and deposited. Part B contains details such as salary paid, other income, deductions claimed, and tax payable, among other things. Switched jobs? You'll need two Form 16s A salaried employee can have two Form 16s in a single financial year if he or she has changed jobs during the financial year. In this case, the individual will need to obtain a Form 16 from both the previous employer and the present employer. Remember, the last date for filing IT returns has now been extended to 15 September 2025 from the usual deadline of 31 July read | Category III alternative investment funds were created 15 years ago. They still lack clear tax rules
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India.com
26-05-2025
- Business
- India.com
5 Small Finance Banks Offering 8-9% Interest Rates For Senior Citizen --Check List
photoDetails english 2906349 Updated:May 26, 2025, 11:18 AM IST 1 / 7 Senior Citizen looking to earn higher returns on their savings can check out these top fixed deposit options with attractive interest rates. 2 / 7 These are short-term investment with high returns. These banks offer some of the best rates on five-year tenure FD on a capital of up to Rs 3 crore for senior citizen. 3 / 7 The banks offering between 8 and 9 percent interest rates are as follows: Suryoday Small Finance Bank: up to 9.1% Unity Small Finance Bank: up to 8.65% NorthEast Small Finance Bank: up to 8.5% Utkarsh Small Finance Bank: up to 8.25% Jana Small Finance Bank: up to 8.2% 4 / 7 It must be noted that when interest earned by senior citizen (aged 60 years or more) crosses Rs 1 lakh in a financial year, banks are required to deduct Tax Deducted at Source (TDS), even if the individual's actual tax liability is zero. 5 / 7 In the above circumstances, Form 15H --a self-declaration form that senior citizens aged 60 years-- can help avoid this deduction. Senior citizens can submit the form to their bank or financial institution declaring that their total income falls below the taxable limit. 6 / 7 As a result, banks are instructed not to deduct TDS from their interest earnings. This saves retirees from the inconvenience of filing returns just to claim a TDS refund. 7 / 7 Under the new income tax regime, if the total income of senior citizen does not exceed Rs 12 lakh in a financial year, they are eligible for a full rebate under Section 87A. (Disclaimer: The article is meant for only informational purpose and is not intended to constitute financial advice to any person)
Business Mayor
24-05-2025
- Business
- Business Mayor
FD rate up to 9.1% for senior citizens investing for 5 years; Know the list of banks
There are still some banks who continue to offer up to 9.1% interest rate on fixed deposits (FD) made by senior citizens (age 60 years and above) for five year tenure and not exceeding Rs 3 crore. Read below to know the list of banks offering FD interest rate up to 9.1% Bank FD interest rate FD rate up to 9.1% Suryoday Small Finance Bank is offering 9.1% interest rate on FD of five year tenure. FD rate up to 8.65% Unity Small Finance Bank is offering 8.65% interest rate on FD for five year tenure. Bank Name Interest rate Suryoday Small Finance Bank 9.1% Unity Small Finance Bank 8.65% NorthEast Small Finance Bank 8.5% Utkarsh Small Finance Bank 8.25% Jana Small Finance Bank 8.2% Source: as of May 21, 2025 FD rate up to 8.5% NorthEast Small Finance Bank is offering up to 8.5% interest rate on FD for five year tenure. FD rate up to 8.25% Utkarsh Small Finance Bank is offering 8.25% interest rate on FD for five year tenure. FD rate up to 8.2% Jana Small Finance Bank is offering 8.2% interest rate on FD for five year tenure. Disclaimer: While deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, experts advise investors to exercise caution when investing in their FDs. Given their unique business model, the risk associated with investing in small finance bank FDs might differ slightly from that of scheduled commercial banks. To mitigate potential risks, it's recommended that investors limit their exposure to small finance bank FDs to an amount that falls within the DICGC coverage. This ensures that their principal and interest are protected in unforeseen circumstances. When is TDS deducted from bank FDs? TDS is required to be deducted by banks if the interest amount in an FD is above Rs 1 lakh in a particular bank. Do note that TDS is not any additional tax, you can get this tax back as a refund or adjust it with your total tax liability at the time of income tax return filing (ITR). Moreover, if you are eligible for a tax refund then you might be eligible for interest on tax refund. For instance, if a senior citizen's income is Rs 11 lakh then, it's not subject to income tax due to Section 87A tax rebate under the new tax regime for FY 2025-26. Section 87A tax rebate is available for up to Rs 12 lakh income level under the new tax regime. Despite the fact that no income tax is levied on such an income level (below Rs 12 lakh), banks and other financial institutions will still deduct TDS. This is because the law mandated them to deduct TDS once the interest/income amount crossed a particular threshold which was Rs 1 lakh for senior citizens. This happens because banks are not aware about tax liability and deduct TDS whenever the annual interest amount crosses Rs 1 lakh. So, can such a senior citizen file form 15H to avoid TDS on fixed deposits in such situations. READ SOURCE
Economic Times
24-05-2025
- Business
- Economic Times
FD rate up to 9.1% for senior citizens investing for 5 years; Know the list of banks
ET Online There are still some banks who continue to offer up to 9.1% interest rate on fixed deposits (FD) made by senior citizens (age 60 years and above) There are still some banks who continue to offer up to 9.1% interest rate on fixed deposits (FD) made by senior citizens (age 60 years and above) for five year tenure and not exceeding Rs 3 below to know the list of banks offering FD interest rate up to 9.1% Suryoday Small Finance Bank is offering 9.1% interest rate on FD of five year tenure. Unity Small Finance Bank is offering 8.65% interest rate on FD for five year tenure. Bank Name Interest rate Suryoday Small Finance Bank 9.1% Unity Small Finance Bank 8.65% NorthEast Small Finance Bank 8.5% Utkarsh Small Finance Bank 8.25% Jana Small Finance Bank 8.2% Source: as of May 21, 2025 NorthEast Small Finance Bank is offering up to 8.5% interest rate on FD for five year Small Finance Bank is offering 8.25% interest rate on FD for five year Small Finance Bank is offering 8.2% interest rate on FD for five year tenure. Disclaimer: While deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, experts advise investors to exercise caution when investing in their FDs. Given their unique business model, the risk associated with investing in small finance bank FDs might differ slightly from that of scheduled commercial banks. To mitigate potential risks, it's recommended that investors limit their exposure to small finance bank FDs to an amount that falls within the DICGC coverage. This ensures that their principal and interest are protected in unforeseen circumstances. TDS is required to be deducted by banks if the interest amount in an FD is above Rs 1 lakh in a particular bank. Do note that TDS is not any additional tax, you can get this tax back as a refund or adjust it with your total tax liability at the time of income tax return filing (ITR). Moreover, if you are eligible for a tax refund then you might be eligible for interest on tax instance, if a senior citizen's income is Rs 11 lakh then, it's not subject to income tax due to Section 87A tax rebate under the new tax regime for FY 2025-26. Section 87A tax rebate is available for up to Rs 12 lakh income level under the new tax the fact that no income tax is levied on such an income level (below Rs 12 lakh), banks and other financial institutions will still deduct TDS. This is because the law mandated them to deduct TDS once the interest/income amount crossed a particular threshold which was Rs 1 lakh for senior citizens. This happens because banks are not aware about tax liability and deduct TDS whenever the annual interest amount crosses Rs 1 lakh. So, can such a senior citizen file form 15H to avoid TDS on fixed deposits in such situations.
Time of India
24-05-2025
- Business
- Time of India
FD rate up to 9.1% for senior citizens investing for 5 years; Know the list of banks
Bank FD interest rate FD rate up to 9.1% FD rate up to 8.65% Bank Name Interest rate Suryoday Small Finance Bank 9.1% Unity Small Finance Bank 8.65% NorthEast Small Finance Bank 8.5% Utkarsh Small Finance Bank 8.25% Jana Small Finance Bank 8.2% Live Events FD rate up to 8.5% FD rate up to 8.25% FD rate up to 8.2% When is TDS deducted from bank FDs? There are still some banks who continue to offer up to 9.1% interest rate on fixed deposits (FD) made by senior citizens (age 60 years and above) for five year tenure and not exceeding Rs 3 below to know the list of banks offering FD interest rate up to 9.1%Suryoday Small Finance Bank is offering 9.1% interest rate on FD of five year Small Finance Bank is offering 8.65% interest rate on FD for five year as of May 21, 2025NorthEast Small Finance Bank is offering up to 8.5% interest rate on FD for five year Small Finance Bank is offering 8.25% interest rate on FD for five year Small Finance Bank is offering 8.2% interest rate on FD for five year While deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, experts advise investors to exercise caution when investing in their FDs. Given their unique business model, the risk associated with investing in small finance bank FDs might differ slightly from that of scheduled commercial banks. To mitigate potential risks, it's recommended that investors limit their exposure to small finance bank FDs to an amount that falls within the DICGC coverage. This ensures that their principal and interest are protected in unforeseen is required to be deducted by banks if the interest amount in an FD is above Rs 1 lakh in a particular bank. Do note that TDS is not any additional tax, you can get this tax back as a refund or adjust it with your total tax liability at the time of income tax return filing (ITR). Moreover, if you are eligible for a tax refund then you might be eligible for interest on tax instance, if a senior citizen's income is Rs 11 lakh then, it's not subject to income tax due to Section 87A tax rebate under the new tax regime for FY 2025-26. Section 87A tax rebate is available for up to Rs 12 lakh income level under the new tax the fact that no income tax is levied on such an income level (below Rs 12 lakh), banks and other financial institutions will still deduct TDS. This is because the law mandated them to deduct TDS once the interest/income amount crossed a particular threshold which was Rs 1 lakh for senior citizens. This happens because banks are not aware about tax liability and deduct TDS whenever the annual interest amount crosses Rs 1 lakh. So, can such a senior citizen file form 15H to avoid TDS on fixed deposits in such situations.
