Latest news with #TDS
Economic Times
2 hours ago
- Business
- Economic Times
FD rate up to 8.5% for senior citizens investing for three years; Know the list of banks
Several small finance banks are offering attractive fixed deposit interest rates up to 8.5% for senior citizens on three-year terms, with deposits insured up to Rs 5 lakh. While these rates are appealing, experts advise caution and limiting exposure to the insured amount. Read below to know more about bank FD interest rate. Tired of too many ads? Remove Ads Bank FD interest rate for senior citizens FD rate up to 8.5% FD rate up to 8.25% for senior citizens Tired of too many ads? Remove Ads Bank name Interest rate Utkarsh Small Finance Bank 8.5% Jana Small Finance Bank 8.25% slice Small Finance Bank 8.25% Suryoday Small Finance Bank 8.15% FD rate up to 8.15% When is TDS deducted from bank FDs? There are still some banks which continue to offer up to 8.5% interest rate on fixed deposits (FDs) made by senior citizens (age 60 years and above) for a three- year term with a maximum limit of Rs 3 below to know the list of banks offering FD interest rates up to 8.5%. Utkarsh Small Finance Bank is offering 8.5% interest rate on FD of three year tenure. Jana Small Finance Bank is offering 8.25% interest rate on FD for three year tenure for senior Small Finance Bank is offering 8.25% interest rate on FD for three year tenure for senior as of July 16, 2025 Suryoday Small Finance Bank is offering up to 8.15% interest rate on FD for three 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 are required to deduct tax deducted at source (TDS) if the interest earned on a fixed deposit (FD) exceeds Rs 1 lakh in a particular bank. Keep in mind that TDS isn't an extra tax; you can reclaim it as a refund or offset it against your total tax liability when you file your income tax return (ITR). Moreover, if you are eligible for a tax refund, you might also qualify for interest on that instance, if a senior citizen has an income is Rs 11 lakh, they won't have to pay income tax thanks to the Section 87A tax rebate under the new tax regime for FY 2025-26. The Section 87A tax rebate is applies to income up to Rs 12 lakh under the new tax a senior citizen can submit Form 15H to avoid TDS deduction if his total income, after claiming all deductions and the Section 87A rebate is below the taxable limit, which is Rs 12 lakh for the new tax regime or Rs 5 lakh for the old though no income tax is charged on income below Rs 12 lakh, banks and other financial institutions will still deduct TDS. This is because the law requires them to deduct TDS once the interest/income amount surpasses a certain limit, which is Rs 1 lakh for senior citizens. Banks are not aware of individual tax liabilities and will deduct TDS whenever the annual interest exceeds Rs 1 lakh. Hence submit Form 15H to let the banks know.
Time of India
2 hours ago
- Business
- Time of India
FD rate up to 8.5% for senior citizens investing for three years; Know the list of banks
Several small finance banks are offering attractive fixed deposit interest rates up to 8.5% for senior citizens on three-year terms, with deposits insured up to Rs 5 lakh. While these rates are appealing, experts advise caution and limiting exposure to the insured amount. Read below to know more about bank FD interest rate. Tired of too many ads? Remove Ads Bank FD interest rate for senior citizens FD rate up to 8.5% FD rate up to 8.25% for senior citizens Tired of too many ads? Remove Ads Bank name Interest rate Utkarsh Small Finance Bank 8.5% Jana Small Finance Bank 8.25% slice Small Finance Bank 8.25% Suryoday Small Finance Bank 8.15% FD rate up to 8.15% When is TDS deducted from bank FDs? There are still some banks which continue to offer up to 8.5% interest rate on fixed deposits (FDs) made by senior citizens (age 60 years and above) for a three- year term with a maximum limit of Rs 3 below to know the list of banks offering FD interest rates up to 8.5%. Utkarsh Small Finance Bank is offering 8.5% interest rate on FD of three year tenure. Jana Small Finance Bank is offering 8.25% interest rate on FD for three year tenure for senior Small Finance Bank is offering 8.25% interest rate on FD for three year tenure for senior as of July 16, 2025 Suryoday Small Finance Bank is offering up to 8.15% interest rate on FD for three 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 are required to deduct tax deducted at source (TDS) if the interest earned on a fixed deposit (FD) exceeds Rs 1 lakh in a particular bank. Keep in mind that TDS isn't an extra tax; you can reclaim it as a refund or offset it against your total tax liability when you file your income tax return (ITR). Moreover, if you are eligible for a tax refund, you might also qualify for interest on that instance, if a senior citizen has an income is Rs 11 lakh, they won't have to pay income tax thanks to the Section 87A tax rebate under the new tax regime for FY 2025-26. The Section 87A tax rebate is applies to income up to Rs 12 lakh under the new tax a senior citizen can submit Form 15H to avoid TDS deduction if his total income, after claiming all deductions and the Section 87A rebate is below the taxable limit, which is Rs 12 lakh for the new tax regime or Rs 5 lakh for the old though no income tax is charged on income below Rs 12 lakh, banks and other financial institutions will still deduct TDS. This is because the law requires them to deduct TDS once the interest/income amount surpasses a certain limit, which is Rs 1 lakh for senior citizens. Banks are not aware of individual tax liabilities and will deduct TDS whenever the annual interest exceeds Rs 1 lakh. Hence submit Form 15H to let the banks know.
Mint
a day ago
- Business
- Mint
TDS refund rules to be made simpler under Income Tax Bill 2025? Here's what we know
Taxpayers often have to file income tax returns just so to claim a refund for having tax deducted at source for various reasons even when their income does not fall under the taxable bracket. The government is reportedly working on fulfilling this requirement simpler now. Instead of filing ITRs solely for claiming TDS refund, taxpayers may be able to do it by just filling up a simple form, according to a report by The Hindustan Times. The Select Committee on the Income Tax Bill 2025 made a recommendation to this effect to the government, the report said citing functionaries related directly with the legislation. 'The panel felt that the current mandatory requirement to file a return solely for the purpose of claiming a refund can inadvertently leads to prosecution, particularly for small taxpayers whose income falls below the taxable threshold but from whom TDS has been deducted. In such cases, the law should not compel a return merely to avoid penalty,' the official, who was not named, was quoted as saying by the newspaper. The government has accepted the suggestion and will implement it as an amendment to the bill, the person said. Two other panel members cited by HT confirmed that the idea is for the CBDT to work out a simple form for those who are not under the tax threshold, instead of them filing IT returns. 'We discussed it in the meeting. The idea is instead of filing an ITR, one can file a simple form for claims. The process will be linked with Form 26AS.' Form 26AS is a consolidated statement of tax deducted and collected at source. The Select Committee on the Income Tax Bill 2025 suggested to do away with a clause that says 'a person who intends to make a claim of refund under Chapter 10' should file an IT return. Under the recent amendments to the new tax regime, people getting salaries up to ₹ 12.75 lakh do not need to pay taxes. However, when salaried employees do not present the required documents, the employer deducts TDS. The panel also added more accountability to the controversial provision that empowers tax officials get access to a taxpayer's digital devices. One of the functionaries quoted by HT said that the new bill aims to simplify income tax laws as well as make tax administration nimble and efficient. 'For example, the existing Income-Tax Act, 1961 does not specifically mention digital devices, which often become a contentious point in case of litigation. This bill seeks to specifically authorise officials to gain access to digital devices, besides books of account, ledgers and other manual records showing details of income and expenditure,' he was quoted as saying. The new law is likely to be implemented from April 1 next year, the person reportedly said. A Parliamentary panel examining the Income Tax Bill-2025 on Wednesday made 285 suggestions on the draft legislation
News18
2 days ago
- Business
- News18
Form 26AS Explained: A Must-Have For Hassle-Free ITR Filing
A critical financial tool that summarises all the tax deducted on behalf of the taxpayer, the Form 26AS can be downloaded from the Income Tax Department's official website. Form 26AS is a consolidated Annual Information Statement for a particular financial year from the income tax department, mentioning the tax deducted on behalf of the taxpayer. Form 26AS is a critical exemption tool, helping individuals save their net income by providing a detailed account of their tax assessment. This statement helps cross-verify the deductions and refunds due to a salaried individual when they file for the ITR, summarising various details. Apart from the Tax Deducted at Source (TDS) and Tax Collected at Source (TCS), the Form 26AS also contains advance tax/self-assessment tax/regular assessment tax deposited, the refund received during a financial year (if any), details of any Specified Financial Transactions (SFT) (if any), details of tax deducted on sale of immovable property u/s194IA (in case of seller of such property). The form also provides details of any defaults made on TDS, while featuring information related to the demand and refund and details of pending and completed proceedings. Salaried employees check their Form 26AS to verify that the TDS deducted by their employer is correctly deposited and confirm advance or self-assessment tax payments. It helps match the income sources and prevent any tax notice. One can also avoid refund delays that may be caused by the tax credit mismatches. Here is a step-by-step guide on how you can download the Form 26AS: Step 2: Log in to the site's e-filing portal Step 3: Navigate to the 'e-file', followed by the Income Tax Returns and click on View Form 26AS Step 4: Go through the disclaimer. Once you click confirm, you will be redirected to the TDS-CPC Portal. Step 5: Once you enter the TDS-CPC Portal, agree to the acceptance of usage and click 'proceed' Step 6: Click on View Tax Credit (Form 26AS) Step 7: Select the 'Assessment Year' and 'View Type', which could be HTML or text. Step 8: Finally, click on View/Download If your Form 26AS download file is password protected, use your registered date of birth or date of incorporation printed on the Permanent Account Number (PAN) card to open it. The DOB password is to be typed in ddmmyyyy format. If an individual was born on 28th November, 1996, the password will be 28111996. view comments First Published: July 18, 2025, 16:36 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
2 days ago
- Business
- News18
ITR Filing 2025: Claimed A Fake Deduction? You Could Face 7 Years Jail And 200% Penalty
Last Updated: Claiming a fake deduction in ITR filing may attract a penalty up to 200% and 7-year jail. Taxpayers should file ITR-U if they have claimed wrong deduction. ITR Filing 2025: In a widespread investigation, the income tax department has uncovered large-scale misuse of deductions by taxpayers. The tax department used data analytics and AI tools to identify fake or inflated claims such as false TDS filed via refund agents. The authorities identified fraudulent claims under popular sections like HRA (10(13A)), health insurance (80D), political and general donations (80G, 80GGC), and interest on education or home loans (80E, 80EE, 80EEB). Even 40,000 taxpayers used ITR-U (which we have given detailed information below) in last 4 months and over Rs 1,045 crore of wrongful deductions were reversed after being flagged by the IT department. Amid the ongoing tax season, it has become important to understand the consequences of fake claims to get the tax benefits and reduce the liability. Tax experts have warned that fake claims can attract harsh penalties. Under Section 270A, taxpayers may face a 200% penalty on tax due for misreporting, 24% annual interest under Sections 234B and 234C, and even prosecution up to seven years under Section 276C in case of willful evasion. Income-tax is raiding individuals for deduction claimsThey're cracking down on fake HRA, donation deductions, etc. using AI Over 40,000 taxpayers reversed fake deduction claims worth ₹1,045 crores🤯 Claimed fake deductions? Here's what income tax did and can do to you🧵👇 — (@TaxBuddy1) July 15, 2025 What Should You Do? If you feel you've claimed a wrong deduction, you can file ITR-U. It allows you to fix errors, add missed income and withdraw false claims. Taxpayers are advised to avoid third-party refund agents and instead file their returns honestly, cross-checking details with their AIS/Form 26AS. The ITR-U facility remains available for up to five years to help rectify any errors or voluntarily withdraw incorrect claims. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
