Aruninte Blog

How to avoid TDS ( Tax Deduction from Source ) on the interest in Bank Account Deposits in India. Submit Form 15G/H if you have Fixed Deposit or Recurring Deposit Tax Deducted at Source (TDS) as per Income Tax Rules is applicable for Fixed Deposit interest accumulated / earned in excess of Rs. 10,000/- in a Financial Year except NRE fixed Deposits TDS is applicable if Domestic Fixed deposit interest earned / accumulated in a financial year is Rs. 10,000/- and above. TDS can be avoided by submitting Form 15G / 15H, if Fixed Deposit Interest Income is less than Rs. 2 Lakhs. If Fixed Deposit Interest Income is above Rs. 2 Lac, TDS will be compulsorly deducted from that account. Download the  Form 15G (For Ordinary Individual) and Form 15H (For Senior Citizens) ; request you to submit the original signed forms to your bank before 28.02.2014. If PAN number is not submitted to bank account,  request you to link the PAN number with your account

Life Insurance (Section 80C) With tax savings, Life Insurance purchase becomes an effective long term savings cum protection option. Maximum tax saving through Life Insurance is 30,900. Know More Health Insurance (Section 80D) Health Insurance is a cost effective way to protect your family against medical exigencies. You can get Health Insurance for self, immediate family or parents. It can save you 10,815 on Income Tax. Know More Equity Linked Savings Scheme (ELSS) (Section 80C) ELSS is a category of Mutual Fund schemes that invest primarily in stocks and are eligible for Section 80C benefits. Here too, you can save up to 30,900 on Income Tax. Know More Tax Saver Fixed Deposits (Section 80C) Tax Saver Fixed Deposits is another investment option introduced by the Government of India. Investments in these up to 1 lakh can save you upto 30,900 in Income Tax. Know More Rajiv Gandhi Equity Savings Scheme (RGESS) (Section 80CCG) RGESS allows new retail investors to a...

Note : This info is for assessment year 2013-14 only ( financial year 2012-13 ). Tax Saving 5 yr Fixed Deposit have 5 year locking period. You could invest Rs. 1 lakhs in this under 80 C of Indian Income Tax . The comparison is here. HDFC - 8.75 pct Federal Bank - 8.75 pct SBT - 8.5 pct ICICI - 8.5 pct Axis Bank - 9 pct These rates are not for Senior Citizens who might get a +.25 or +.5 pct more. You don't have to open a savings account for investing in the tax saving deposit scheme.