Topic: please help with IT query

Today only I have seen this nice website which relatively got more information then any other resource. I have around 20 lakhs saving which I want to transfer into FDs in the name of my mom who is house wife. Actually I am an NRI does nt live with her in India so I want to give her financial independence.

Coming on my real question, I have seen many contradictory response. somewhere it is mentioned that TDS is 33% and some where its 10%. Could you please let me know the definite answer. how much rate of interest it will be and second thing because by mom doesn’t work, wont be she liable of some tax free income ?

please response.

many thanks,
Sandeep Singh

Hello Sandeep,

The rate to TDS applicable to FD is 10%.

As you wish to take this FD in your mothers name the interest income shall be taxable in her hand but since she is a house wife and does not have any other income her total income upto Rs1.8 lakhs shall be exempt. Now all you need to do is file form 15H with the FD papers in duplicate, on doing so there shall be no tax deduction from the interest payments

A detalied article on above is posted on our website, click on the link below to view details:

http://www.itrust.in/content/personal-finance/hot-topics/Tax-Tip-Tell-me-What-are-the-ways-to-avoid-undue-tax-deductions

Preteek many thanks for your answer. very much appreciated. one more thing do you guys also provide such services like opening FDs as I told you I am not in India right now and dont have anyone around to help my mom to open the account.

Regards,
sandeep

This message was edited 1 time. Last update was at 08/04/2009 15:29:45

Dear Sandeep,

As per your above discussion with Prateek Aggarwal from our Income Tax Team, we do offer Fixed deposits with various institutions. Please advise what tenure of fixed deposits you are interested in and also the contact details of your mother so that we can get in touch with her for this. Kindly also advise if she has a PAN card and an address proof in her name. Kindly note my email ID for further communications :

nbagla@itrust.in.

Regards
Neeraj Bagla

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