Company FD TDS Deduction

Hi, I’ve read that 10% TDS is deducted if your interest from a corporate FD is above 5K.

I want to know that is there a way to avoid this if the income is above 2.5L and form 15G cannot be submitted due to that ?
Or can I actually still submit form 15G just so that TDS isnt deducted but at the end of financial year I add the interest from the corporate FD in income from other sources and pay tax accordingly?

Main purpose of asking this is that if TDS is deducted from the FD amount at the end of each year then the final cumulative yield will be affected and I’ll be getting lesser maturity amount.

@Quicko @TeamQuicko

Any help ? @TeamQuicko

Hi @FalconZex

Form 15G can be submitted only if the income is below the basic exemption limit. Since your income is more than Basic Exemption Limit you cannot use Form 15G to avoid TDS deduction even though the tax liability is nil after the rebate under section 87A.
In such a case you can spread your deposits across different banks to prevent TDS deduction. This will save the undesired hassle of getting TDS deducted then claiming refund while filing ITR.

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For banks I can spread the amount so that interest is less than 40K. But for company FD the interest limit is only 5K which is not possible to avoid by spreading. So, is there no way I can avoid this TDS deduction ? Because of this the FD maturity amount will be affected.
@Divya_Singhvi

Hi @FalconZex

There is no such way to avoid TDS on FD. Some taxpayers do file form 15G declaring that they don’t have any other income even after having some. But, this is not advisable since it not legally correct.

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