I understand that the finance bill 2007 introduced deduction of tax on interest payable on 85 RBI Savings BONDS. My total income is below taxable level and I earn interest on 8 % RBI savings Bonds. Is there any provision of filing form 15g/h for avoiding deduction of tax at source.
RE:TDS on interest payable on 8% RBI Savings Bonds
by Amitabh on Apr 28, 2007 01:55 PM Permalink
Yes,certainly.TDS on interest on securities is governed by sec 193 of the income tax act and amendment has been made therein to include 8 % RBI bonds within that.If a declaration in writing is made in the prescribed form and verfied in the presecribed manner that the tax on total income for the year in which such income (interest on bonds in your case) is included is nil,no deduction of tax will be made under sec 193.This is clearly as per sec 197A of the income tax act.
