I am a super senior citizen and have income only from bank interest, which is about Rs 5 lakh in a year. I continue to put away Rs1.5 lakh in tax saving schemes under Section 80C. Can I make sure that the bank does not deduct TDS on the interest I earn?

Pritpal Singh, Chandigarh

Typically, banks are required to deduct TDS when interest income is more than Rs 10,000 in a year. However, if your total income is below the taxable limit, you can submit Form 15G and Form 15H to the bank requesting them not to deduct any TDS on your interest. Banks do not deduct TDS if the final tax on your estimated income is calculated as per the provisions of the Income Tax Act is nil. As your earnings are only from bank interest and about Rs5 lakh and you are claiming the Section 80C benefits, you should file the Form 15H and take this up with the bank manager.

olmdesk@outlookindia.com